BIBLIOGRAPHY BAWAS, JENELYN S. April...
BIBLIOGRAPHY
BAWAS, JENELYN S. April 2013. Assessment on Marketing Communications of
Wine Processors in La Trinidad, Benguet. Benguet State University, La Trinidad, Benguet
Adviser: Samuel L. Duyan, BSc.
ABSTRACT
The study on the assessment on marketing communications of wine processors in
La Trinidad, Benguet aimed to identify the objectives of wine processors in communicating
their products; identify the marketing communications/promotional mix adopted and the
reasons of wine processors in adopting such promotional mix; determine the barriers
affecting the implementation of an effective marketing communications adopted; identify
the ways employed by wine processors in overcoming these barriers, and identify the wine
processor’s perceptions toward the efficiency and effectiveness of the marketing
communications adopted.
Most of the respondents produced strawberry wine and majority of them were
engaged from 1-5 years in wine processing.
Great majority of the respondents have claimed that their objective in
communicating their products was to make sales. The communication tools they adopted
were advertising through labeling (100%) and branding (100%), sales promotion through
free taste (100%) and free delivery (93.33%), and the reasons for adopting such
communication tools include the affordability (100%), easily seen by the customers
(100%), and the ease of receiving feedback from their customers (100%). The major barrier
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
encountered by the processors was the credit made by customers and the solution employed
to at least minimize credit build-up is through installment basis. The communication tools
in terms of efficiency were perceived to be most efficient (personal selling) and efficient
(sales promotion such as free taste, free delivery, participation in trade fairs and plain
product display) while in terms of effectiveness, the communication tools such as the
personal selling, sales promotion and advertising (labeling and branding) were perceived
to be most effective.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
INTRODUCTION
Rationale
The word wine comes from Latin vinum, akin to Greek oinos, which means grape
wine.
Wines are also made from other fruits other than grapes which include cherry,
plums, and pears. These fruits are home fermented products, but some are manufactured
commercially as well.
In the Province of Benguet, wine production is emerging as a promising enterprise.
Wines that are being produced are strawberry wine, bugnay wine, yacon, blueberry, and
rice wine. Wine production was able to penetrate the different festivals in the province.
Moreover, La Trinidad is one of the fastest growing cottage industries in Benguet
gaining much popularity and demand is strawberry wine making. Strawberry farming is
suitable to this place because of its cool climate (Maximo, 2011).
In connection, communication is an interactive dialogue between company and its
customers that takes place during the pre-selling, consuming and post consuming stages.
People can communicate through traditional media such as newspapers, radio, telephone
and television, as well as through the new innovations of media forms such as computers,
fax machines, cellular phones, social networking sites and pagers (Kotler, 2000).
Processors should develop communication strategies on how they communicate
with customers in order to have more and loyal customers. As a processor, they are going
to see “what their customer’s needs”, “what should be developed”, “what the customer
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
mostwant in the product”. Also, processors should maintain their relationships with their
customer in order to have a good or effective communication between them.
Statement of the Problem
The study aimed to answer the following questions:
1. What are the objectives of wine processors in communicating their product or
business?
2. What are the marketing communications adopted and the reasons of wine
processors in adopting such marketing communication/promotional mix?
3. What are the barriers affecting the implementation of an effective marketing
communication adopted by the wine processors?
4. What are the ways employed in overcoming the barriers of an effective
communication? and,
5. What are the perceptions of the wine processors toward efficiency and
effectiveness of the marketing communications adopted?
Objectives of the Study
The study aimed to:
1. Identify the objectives of wine processors in communicating their product or
business;
2. Identify the marketing communications adopted and the reasons of wine
processors in adopting such marketing communication/promotional mix;
3. Determine the barriers affecting the implementation of an effective
marketing communications adopted by wine processors;
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
4. Identify the ways employed in overcoming the barriers of an effective
communications; and,
5. Identify the perceptions of the wine processors toward the efficiency and
effectiveness of the marketing communications adopted.
Importance of the Study
The study was important in determining the communication process among wine
processors and in identifying the barriers affecting their implementation of an effective
communication. The result can further help the processors in formulating a winning and
more effective communication strategy to increase or improve their sales.
The results could also serve as reference to other researchers who will be dealing
on the same scope of study.
Scope and Delimitation of the Study
The study focused in the assessment on marketing communication of wine
processors in La Trinidad, Benguet specifically the objectives of wine processors in
communicating their product or business, marketing communications adopted and the
reasons of wine processors in adopting such marketing communications/promotional mix,
barriers affecting the implementation of an effective marketing communications adopted
by the wine processors, ways employed in overcoming the barriers of an effective
communications, and identify the most efficient and most effective marketing
communications adopted by the wine processors.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
REVIEW OF LITERATURE
Marketing
According to Cooper and Schindler (2006), marketing is an original function and set of
processes for creating, communicating, and delivering value to customers and for
managing customer relationships in ways that benefit the origin and its stakeholders. It is
the process of influencing voluntary exchange transactions in which one party to the
transaction can be envisioned in some fashion as a customer of the other, the marketer. The
marketing process involves communication and requires a mechanism or system to carry
out the exchange of the marketer’s product for something of value.
Communication
Communication is the process by which we exchange or share meaning through a common
set of symbols. When a company develops a new product, changes an old one, or simply
tries to increase sales of an existing good or service, it must communicate its selling
message to potential customers. Marketers communicate information about the firm and
its products to the target market and various publics through its promotion programs (Hair
Jr. et al., 2006).
Communication can be divided into two major categories, the interpersonal
communication and mass communication. Interpersonal communication is direct, face-to-
face communication between two ormore people. When communicating face-to-face,
people see the other person’s reaction and can respond almost immediately. A sale person
speaking directly with a client is an example of marketing communication that islarge
audience. A great deal of marketing communication is directed to consumers as a whole,
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
usually through a mass medium such as television or newspapers. When a company
advertises, it generally does not personally know the people with whom it is trying to
communicate. Furthermore, the company is unable to respond immediately to costumers’
reactions to its message. Instead, the marketing manager must wait to see whether people
are reacting positively or negatively to the mass communicated promotion. Any clutter
from competitors’ messages or other distractions in the environment can reduce the
effectiveness of the mass communication effort.
Marketing Communication
Marketing communication is the process of effectively communicating product
information or ideas to target audiences. No business can operate in every market to satisfy
everyone’s need. Instead, a company succeeds when it targets a market of those people
most likely to be interested in its marketing program. The target audience is a group of
people who receives marketing messages and has significant potential to respond to the
messages (Burnett and Moriarty, 1998).
Role of Marketing Communication
Organizations communicate with a variety of audiences in order to pursue their marketing
and business objectives. Marketing communications can be used to engage with a variety
of audiences and in such a way that meet the needs of the audience. Messages should
encourage individual members of target audiences to respond to the focus organization (or
product/brand). This response can be immediate through, for example, purchase behaviour
or use of customer care lies, or it can be deferred as information is assimilated and
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
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considered for future use. Even if the information is discarded at a later date, the
communication will have attracted attention and consideration of the message (Fill, 2011).
The reason for using marketing communications will vary according to the prevailing
situation or context but the essential goal is to provoke an audience response. This response
might be geared to developing brand values and the positive thoughts an individual might
have about a brand. This is grounded in a “thinking” and orientation, a combination of both
thoughts and emotional feelings about a brand. Another type of response might be one of
that stimulates the audience to act in particular ways. Referred to as a behavioural brand
response, the goal is to ‘encourage particular behaviours’.
Tasks of Marketing Communication
According to Bowersox and Morash (1989) as cited by Fill (2011) that communication
plays an important part in the process through which information flows as it can help
accomplish one or more key tasks.
First, marketing communications can act as differentiator, particularly in markets where
there is little to separate competing products and brands. Second, communications can also
be used to reinforce experiences and beliefs. This may take the form of reminding people
of a need they might have or reminding them of the benefits of past transactions with a
view to convincing them that they should enter into similar exchange.
In addition, it is possible to provide reassurance or comfort immediately prior to an
exchange or more commonly, post purchase. This is important as it helps to retain current
customers and improve profitability, an approach to business that is much more
costeffective than constantly striving to lure new costumers. Brands are often refresh, in
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
order that they maintain currency among the target audience and remain competitive. The
third task identified was that communication can inform and make potential costumers
aware of an organization’s offering. No purchase can be made without prior awareness.
Sometimes audiences need to be educated, shown how to use a product or services or
advised about why a product or services or advised why a product might be helpful. The
fourth and final tasks is to use communication to persuade current and potential customers
of the desirability of either trialling a product, buying a product or enter into a
relationship.Therefore, communication can build images about a brand that is differentiate
it, reinforcememories and understanding, inform and make audiences aware of a brand’s
presence and finallypersuade an individual to buy and consume a product or services.
Communication Process
Kotler (2000) discussed that to communicate effectively; marketers need to understand the
fundamental elements underlying effective communication. The communication process
shows a communication model with nine elements. Two represent the major parties in
communication-sender and receiver. Two represent the communication tool-message and
media. Four represent major communication tools-encoding, decoding, response and
feedback. The last element in the system is noise (random and competing messages that
may interfere with the intended communication). The model underscores the key factors in
effective communication. Senders must know what audiences they want to reach and what
responses they want to get. They must encode their messages in a way that understands
how the target audience usually decodesmessages. Theymust transmit the messages
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through efficient media that reach the target audience and develop feedback channels to
monitor the responses.
For a message to be effective, the sender’s encoding process must mesh with the receiver’s
decoding process. The more the sender’s field of experience overlaps with that receiver,
the more effective the message is likely to be. This puts a burden on communicators from
one social stratum (such as advertising people) who wants to communicate effectively with
another stratum (such as factory workers).
The sender’s task is to get his or her message through the receiver. The target audience
may not receive the intended message for any of the three reasons, the selective attention,
selective distortion, and selective retention. Selective attention, people are bombarded by
1,600 commercial messages a day, of which 80 are consciously noticed and about 12
provoke some reaction. Selective attention explains why ads with bold headlines promising
something, such as “how to make a million”, have a high likelihood system. As a result,
receivers often add things to the message that are not there (amplification) and do not notice
other things that are there (levelling). The communicator’s task is to strive for simplicity,
clarity, interest, and repetition to get the main point across. Selective retention, people will
retain in long term memory only a small fraction of the messages that reach them. if the
receiver’s initial attitude toward the object is positive and he or she rehearses support
arguments, the message is likely to be accepted and have high recall. If the initial attitude
is negative and the person rehearses counter arguments, the messages are likely to be
rejected but to stay in long term memory. Because much of persuasion requires the
receiver’s rehearsal of his or her own thoughts, much of what called is actually self-
persuasion.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
The communicator considers audience traits that correlate with persuasibility and uses
them to guide messages and media development. People of high education or intelligence
are thought to be less persuasible, but the audience is inconclusive. Those who accept
external standards to guide their behaviour and who have a weak self-concept appear to be
more persuasible, as do persons who have self-confidence.
Methods of Communication
Methods of conveying a message can include oral, written, nonverbal and electronic
media.
Oral.People communicate with each other most often by talking, or oral
communication. Popular forms of oral communication include speeches, formal one-to-
one and group discussions, informal rumor-mill or grapevine.
Written. Written communications include memos, letters, organizational
periodicals, bulletin boards, or any device that transmits written words or symbols.
Nonverbal cues. Some of the most meaningful communications are neither spoken
nor written. The most well-known areas of nonverbal communications are body language
and verbal intonation.
Body language. Body language refers to gestures, facial configurations, and other
movements of the body.
Verbal intonation. Verbal intonation refers to the emphasis someone gives to words
or phrases.
Electronic media. Today we rely on a number of sophisticated electronic media to
carry our communications. In addition to more common media-telephone and
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
publicxerographic reproduction, and host of other electronic devices that we can use in
conjunction with speech or paper to create more effective communication.
Barriers to Effective Communication
According to Bovee and Thill (2000), the following barriers to effective
communications are filtering, selected participation, emotional interference, poor listening,
cultural interferences, physical distraction, information overload and time pressures.
Filtering. Filtering is screening out or abbreviating information before a message is passed
on to someone. In business, the filters between you and your receiver are many such as
secretaries, assistants, answering machines, and voice mail, to name a few. Just getting
through by telephone can take a week if you’re calling someone who’s protected by the
gatekeepers or filters. Worse yet, information theory tells us that every relay doubles the
noise and cuts the message in half. That means your message may be distilled and probably
distorted it’s passed on to your intended receiver.
Selective participation. The receiver, in the communication process, selectively sees and
hears communications, depending on his needs, motivation, experience, background, and
other personal; characteristics. The receiver also projects his interests and expectations into
communications in decoding them.
Emotional interference. It’s difficult to shape a message when you are upset, hostile or
fearful. Your ideas and feelings often get in the way of being objective. Likewise, if the
other person is emotional, he or she may ignore or distort your message. Although it’s
practically impossible to avoid all communication when emotions are involved you should
be alert to the greater potential for misunderstanding that accompanies emotional
messages.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Poor listening. Although most of us think we know how to listen. We all let our
minds wander now and then, plus we are especially likely to drift off when we are forced
to listen to information that is difficult to understand or that has little direct bearing on our
own lives. If we are tired or concerned about other matters, we are even more likely to lose
interest.
Cultural differences. Communicating with someone from another country is
probably the most extreme example of how different backgrounds and cultures may impede
communication. In fact, it may be one of the hardest communication barriers to overcome
– especially when your receiver’s age, education, social status, economic position, religion,
or life experience also differs substantially from yours.
Physical distraction. Communication barriers are often physical, these are bad
connections, poor acoustics, illegible copy. Although noise of this sort seems trivial, it can
block an otherwise effective message. Your receiver might be distracted by an
uncomfortable chair, poor listening, health problems, or some other irritating condition.
These are annoyances don’t generally block communication, but they may reduce the
receiver’s concentration.
Information overload. Managers receive information from both above and below. There is,
unfortunately, no automatic thermostat to regulate the input of information and turn it off
when the manager is deluged or overflowed. When managers allow themselves to be
inundated with information, given the time and cognitive limits under which they operate,
the effectiveness of communications is likely to suffer. Managers are forced to ignore or
cursorily (briefly) review many messages. Consequently they overlook or misinterpret
some messages.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Nonverbal cues. Nonverbal communication is almost always accompanied by oral
communication. As long as the two are in agreement, they act to reinforce each other. When
nonverbal cues are inconsistent, with the oral message, the receiver becomes confused and
the clarity of the message suffers.
Time pressures. Managers operate under time pressures. Decisions must be made and
deadlines. Time pressures can create communication problems when to expedite matters,
formalchannels are short circuited, leaving some people in the dark, and when messages
are incomplete or ambiguous to the receiver. In either case, effective communication is
deterred or prevented.
Marketing Mix
The combination of a product, how it is disturbed and promoted, and its price.
Together these four components of strategy must satisfy the needs of the market(s) and, at
the same time, achieve the organizations marketing objectives. Some of the challenges
facing marketing managers in developing a marketing mix are product, price, place and
promotion.
Product. Strategies are needed for deciding what products to offer, managing existing
products over time, and dropping failed products. Strategic decisions must also be made
regarding branding, packaging, and other product features.
Branding. Branding is a basic decision in marketing products, in which an
organization uses a name, phrase, design, symbols, or combination of these to identify its
products and distinguish them from those of competitors. A brand name is any word, device
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
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(design, sound, shape or colour), or combination of these used to distinguish a seller’s
goods or services (Berkowitz et al., 2006).
Branding, perhaps the most distinctive skill of professional marketers is their ability to
create, maintain, protect and enhance brands of their product services. A brand is name,
term, sign, symbol, or design or a combination of these, that identifies the maker or seller
of a product or service.Consumers view a brand as an important part of a product, and
branding can add to a product.
Branding helps buyer in many ways. Brand names also tell the buyer something
about product quality. Buyers who always buy the same brand know that they will get the
same features, benefits, and seller several advantages. The brand name becomes the basis
on which the whole story can be built about a product’s special quantities. The seller’s
brand name and trademark provide protection for unique product features that otherwise
might be copied by competitors. And branding helps the seller to segment markets.
Building and managing brands is perhaps the marketer’s most important task (Armstrong
and Kotler, 2004).
Packaging. Packaging consists of all the activities of designing and producing the
container or wrapper for a product. It is intended to serve several purposes. These are to
protect the product on its way to the consumer; protect the product on its way to the
consumer; protect the product after it is purchased; help to persuade middlemen to accept
the product; and help to persuade consumers to buy the product (Etzelet al., 2007).
Kotler and Armstrong (2004) also stated that packaging involves designing and producing
the container or wrapper for a product. The package includes a product’s primary container.
It may also include secondary package that is thrown away when the product is about to be
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used. Finally, it can include a shipping package necessary to store, identify, and ship the
product. Labelling, the printed information appearing on or with the package – is also part
of packaging.
Traditionally, the primary function of the package was to contain and protect the product.
In recent times, however, numerous factors have made packaging an important marketing
tool.
Innovative packaging can give a company an advantage over competitors. In
contrast, poorly designed packages can cause headaches for consumers and lost sales for
the company. Developing a good package for a new product requires making many
decisions. First, the company must establish the packaging concept, which states that the
package should be or do for the product. Should it mainly offer product protection,
introduce a new dispensing method, suggest certain qualities about the product, or do
something else? Decisions then must be made or specific elements of the package such as
size, shape, materials, colour, text and brand mark. The elements must work together to
support the product’s position and marketing strategy.
Labelling. Labels may range from simple tags attached to products to complex graphics
that are part of the package. They perform several functions. At the very least, the label
identifies the product or brand. The label might also describe several things about the
product – who made it, where it was made, when it was made, its contents, how it is to use,
and how to use safely. Finally, the label might promote the product through attractive
graphics.
Product warranty. According to Zikmund and d’ Amico (2002), product warranty
communicates a written guarantee of a products integrity and outlines the manufacturer’s
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responsibility for repairing or replacing defective parts. It may substantially reduce the
risks the buyer perceives to be associated with the purchase.
Unfortunately, consumers often find that warranties are difficult to understand documents
written in legal jargon. Several manufacturers have made use of this fact by offering
warranties advertised as simple, short, plain English documents. Marketers who have not
taken this approach may not realize that terms like fully guaranteed, unconditionally
guaranteed, and lifetime guaranteed don’t mean much to many buyers, especially buyers
who have been disappointed with the service received on other guaranteed products.
Customer service. Customer service is one of the elements of the product mix.
Effective marketers, knowing the marketing does not end with the sale of goods, may create
competitive advantage by emphasizing the amount and quality of customer service.
Delivery service, gift wrapping, repairs and other customer services will help
marketers compete. These services, as auxiliary dimensions of the product, create and
maintain good will. They provide an opportunity to enhance consumer satisfaction with the
total product.
Services are task or activities performed for buyers or intangible that cannot be
handled or examined before purchase. Services differ in their nature and in the reasons
consumer purchase them. Consumers purchase instrumental services – typically, work
performed by others – to achieve a goal without direct involvement in the task.
Product design. Product design, that is, a product’s configuration, composition, and style-
influences most quality dimensions. Marketers must work with engineers on product
design to achieve quality goals. Assuring that the product design is aesthetically pleasing
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
and fashionable often requires considerable consumer research, artistic creativity, and
product planning.
Often, costumer’s perceptions of quality are influenced by a noticeable aspect of product
design or formulation.
Product quality. Quality is defined as meeting or exceeding the needs and
expectation of the costumer. Thus, the goal of the business should be to find out what the
customer wants and then fine tune the process to ensure that they get it. The primary
dimensions of product quality include (a) performance, (b) features, (c) reliability, (d)
conformance, (e) durability, (f) serviceability, (g) aesthetics, (h) perceived quality (Allen
2006).
However, Allen (2006) stated that service quality is attracting equal or more
attention. These are: (a) responsiveness, (b) reliability, (c) accuracy, (d) knowledge, (e)
courtesy, (f) consistency, and (g) speed. These listed dimensions of product and service
quality are, in a broad sense, generic to most situations. However, every business is unique,
and if it is wise to determine the relative importance of each need. After measuring the
satisfaction levels, emphasis can be placed on improving performance in areas important
to the costumer but where the organization may be lacking in comparison to the quality
delivered by competitions.
Price. Setting the price for a product is marketing decision. Other necessary strategies
pertain to changing price, pricing related items within a product line, terms of sale, and
possible discounts. An especially challenging decision is selecting the price for a new
product. The basic price quote, before adjustment. Price adjustments may be made whenthe
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season changes, when the buyer purchases a large quality of a good, or for other reasons.
Many marketers adjust list price with discounts or rebates.
List price. List price functions as a communication tool by adding symbolic value to a good
service and by helping to position the brand in relation to competitors. A high price may
suggest a bargain, and a discount coupon or rebate may encourage purchases by people
who would otherwise not by the product.Price is closely related to other marketing
variables and cannot be discussed without simultaneous consideration of a product, place
and promotion. Pricing strategies and must support the firm’s other marketing strategies.
Discounts. The common price adjustments are discounts, reductions from the list price of
a reimbursement for performance of a specific task.
Allowances. An allowance is reduction in price, a rebate, merchandise, or something else
given an intermediary for performance of a specific activity or in consideration for a large
orders or the performance of a specific gravity.
Place. Place stands for company activities that make the product available to target
consumers/customers (Kotler and Armstrong, 1991).
A distribution channel is a set of interdependent organizations involved in the
process of making a product or service available for use of consumption by the consumer
or industrial user. A distribution channel moves good from producers to consumers. It
overcomes the major time, place, and possession gaps that separate goods and services
from those who would use them.
Promotion. Several promotional methods can be used to communicate with individuals,
groups, and organizations. When an organization combines specific methods to promote a
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particular product, that combination constitutes the promotion mix for that product (Pride
and Ferrell, 2000).
Advertising. Advertising is a paid non-personal communication about an
organization and its product transmitted to a target audience through mass media including
television, radio, the internet, newspapers, magazines, direct email, outdoor displays and
signs on mass transit vehicles. Individuals and organizations use advertising to promote
foods, services, ideas, issues and people. Advertising can perform the following functions
in business.
Awareness building. Advertising can provide an introduction to the company and
its products.
Comprehensive building. If the product embodies new features, some explaining
can be effectively performed by advertising.
Efficient reminding. If prospects know about the product but are not ready to buy,
reminder advertising is more economical than sales calls.
Lead operation. Advertisements offering brochures and carrying the company’s
phone number are an effective way to generate leads for sales representatives.
Legitimizations. Sales representatives can use tear sheets of the company’s ads to
legitimize their company and products.
Reassurance. Advertising can remind customers how to use the product and
reassure them about their purchase.
Personal selling. Personal selling is a paid personal communication that seeks to inform
customers and persuade them to purchase products in an exchange situation.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Personal selling has both advantages and limitations when compared with
advertising. Advertising is general communication aimed at a relatively large target
audience, whereas personal selling involves more specific communication aimed at one or
more several reasons. Reaching one person through personal selling cost considerably
more than through advertising, but personal selling efforts often have greater impact on
customers. It also provides immediate feedback, allowing marketers to adjust their
messages to improve communication. It helps them determine and respond to customers’
information needs.
Public relations. While many promotional activities are focused on a firm’s
customers, other groups or publics – suppliers, stockholders, the media, educators,
government officials and society in general are important to an organization as well. To
communicate with customers and the public, a company employs public relations. Public
relation is a broad set of communication efforts used to create and maintain favourable with
one or more publics can affect a firm’s current sales and profits as well as its long term
survival.
Public relations uses a variety of tools, including annual reports, brochures, event
sponsorship and sponsorship of socially responsible programs aimed at protecting the
environment or helping disadvantaged individuals. Other tools arise from the use of
publicity, which is a part of public relations. Publicity is non-personal communication news
story from about an organization or its products, or both, transmitted through mass medium
at no charge.
Sales promotion. Sales promotion is an activity or material that acts as a direct inducement,
offering added value or incentive for the product, to resellers, salespersons, or consumers.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
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Sales promotion should not be confused with promotion. It is just one part of the
comprehensive area of promotion. It appears a faster growing area than advertising.
Factors in Setting the Marketing Communications Mix
Companies must consider several factors in developing their promotional mix.
These are the type of product market, whatever to use a push or pull strategy, consumer
readiness to make a purchase, stage in the product life cycle, and the company’s market
rank (Kotler, 2004).
Type of the market. Promotional allocations vary between consumer and business
markets. Consumer marketers spend on sales promotion, advertising, personal selling and
public relations, in that order. Business marketers spend on personal selling, sales
promotion, advertising and public relations, in that order. In general, personal selling is
more heavily used with complex, expensive and risky goods and in markets with fewer and
larger sellers.
Push versus pull strategy. The promotional mix is heavily influenced by whether the
company chooses a push or pulls strategy to create sales.A push strategy involves the
manufacturer using sales force and trade promotion to induce intermediaries to carry,
promote and sell the product to end users. Push strategy is especially appropriate where
there is low brand loyalty in a category, brand choice appropriate when there is high brand
loyalty and high involvement in the category, people perceive differences between brand
before they go to store. Companies in the same industry may differ in their emphasis on
push or pull.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Buyer readiness stage. Promotional tools vary in cost effectiveness at different stages of
buyer readiness. Advertising and publicity play the most important roles in the awareness
building stage. Customer comprehension is primarily affected advertising personal selling.
Customer conviction is influenced mostly by personal selling. Closing the sale is
influenced mostly by personal selling and sales promotion, and somewhat by reminder
advertising.
Product life-cycle stage. Promotional tools also vary in cost effectiveness at different stages
of the product life cycle. In the introduction stage, advertising and publicity have highest
cost effectiveness, followed by personal selling to gain distribution coverage and the
promotion to induce trial. In the growth stage, all tools can be toned down because demand
has its own momentum through the word of mouth. In the maturity stage, sales promotion
continues strong, advertising and publicity are reduced, and sales people give the product
only in minimal attention.
Company market rank. Market leaders derive more benefits from advertising than sales
promotion. Conversely, smaller competitors gain more by using sales promotion in their
marketing communications mix.
Definition of Term
1.Effective marketing communication. Tool, strategy or process of communication
used by wine processors that is least expensive and or communication tool that gives result
to higher volume of sales.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
METHODOLOGY
Locale and Time of the Study
The study was conducted in La Trinidad, Benguet from December 2012 to January 2013.
La Trinidad is a first class municipality in the province of Benguet. It is bounded on the
north by the municipality of Tublay, on the south by Baguio and on the west by Sablan and
Tuba. It is popular because it is dubbed as the “Strawberry Capital of the
Philippines.”Several fruit wines are being produced in the municipality aside from its
popular strawberry wine.
Respondents of the Study
The respondents of the study were selected by means of random sampling technique. The
respondents included the processors that have at least one year in wine processing.
Data Collection
The data were conducted through survey questionnaire. Administering of the questionnaire
was done personally by the researcher.
Data Gathered
The data gathered were the objectives of wine processors in communicating their product
or business, the marketing communications and the reasons of adopting such marketing
communications, the barriers affecting the implementation of an effective marketing
communication adopted by wine processors, the ways being employed in overcoming the
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
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barriers of an effective communication and the assessment on the efficiency and
effectiveness of the marketing communications.
Data Analysis
The data were analysed and interpreted through descriptive statistics (such as frequency
counts, and percentage) andweighted mean.
Descriptive statistics are used to describe the basic features of the data in study. They
provide simple summaries about the sample and the measures. Together with simple
graphics analysis, they form the basis of virtually every quantitative analysis of data.
Weighted mean is the statistical tool used to determine the level of effectiveness as
perceived by the community. The weighted is a measure of central tendency. To calculate
the mean, the total number of identified strategy (the sum of all list numbers) must be
divided by the total number of identified strategy.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
RESULTS AND DISCUSSION
Respondent’s Profile
This section presents some profile of the processors which include the kinds of
wines they processed and the number of years they are engaged in wine processing.
Kinds of wines being processed. Table 1 presents the wines being processed or produced
which include strawberry, bugnay, yacon, blueberry, rice, pineapple, santol, grapes,
turmeric, ube and herbal wine 7 in 1. Since La Trinidad is one of the fastest growing
cottage industries in Benguet gaining much popularity and demand in strawberry wine
making, Table 1 shows that almost all of the processors were engaged in strawberry wine
with 93.33%. However, aside from strawberry, these processors were also engaged in other
wines such as bugnay (46.67%), yacon (53.33%), and the same 6.67 % for each of the
different kinds like grapes, pineapple, santol, blueberry, rice, turmeric and ube. In addition,
one processor is engaged in herbal wine 7 in 1 which composed of banaba, lemon grass,
blueberry, dandelion, gotocola, turmeric and honey, which according to this respondent
takes the initiative to produce a unique wine that no one has ever think of producing in the
past.
Number of years engaged in wine processing. The number of years in the business
could determine the extent of the respondents’ skills and knowledge in wine processing.
This could also measure their know how in producing quality wines based from their
experiences and learning from the past years of operation which could be useful in
providing a better and an improved wine products to the customers.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Table 1 shows that majority of the processors (53.33%) were engaged in wine processing
from one to five years, one (6.67%) was engaged from six to ten years and only two
(13.33%) were engaged in wine processing for eleven to fifteen years.
Table 1. Respondent’s profile
PARTICULARS
FREQUENCY
PERCENTAGE
Kinds of wines processed
Strawberry
14
93.33
Bugnay
7
46.67
Yacon
8
53.33
Grapes
1
6.67
Pineapple
1
6.67
Santol
1
6.67
Blueberry
1
6.67
Rice
1
6.67
Turmeric
1
6.67
Ube
1
6.67
Herbal wine 7 in 1
1
6.67
Number of years engaged in wine processing
1- 5
8
53.33
6 – 10
5
33.33
11 – 15
2
13.33
*Multiple Responses
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Objectives of Wine Processors in Communicating
their Products
The common communication objective set by managers is sales related. This
includes increases in market share, return on investment, sales volume increases and
improvements in the value of sales made after accounting for the rate of inflation (Fill,
2011).
On Table 2, the main objective of the processors is to make sales which yielded
86.67%. It can be observed from this Table that making sales and generating profit play an
important role in doing the business. On the other hand, the second objective is to introduce
new product (20%) which aside from their local customers, they are also trying to introduce
their products to the travellers or to the foreigners who are passing through their market
outlet. Moreover, the respondents’ objectives in communicating their product were to build
product awareness and to convince customers to buy which yielded the same 16.67%.
Some of these processors are convince their customers by means of volume but specifically
giving discounts to their friends and loyal customers. The other processors have also their
own technique in convincing their customers though they did not mention how but
accordingly these techniques were effective.
Table 2. Objectives of wine processors in communicating their products
OBJECTIVES
FREQUENCY
PERCENTAGE
Build product awareness
1
6.67
Convince customers to buy
1
6.67
Make sales
13
86.67
Introduce new product or innovations
3
20
*Multiple Responses
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Marketing Communications Adopted
by Wine Processors
There are several marketing communications an entrepreneur can adopt to promote
his or her product. In terms of advertising, it can be through TV, radio, posters,
brochures/booklets and leaflets. Sales promotion such as use of coupons, plain product
display, buy one take one, participation in trade fairs, free taste and free delivery. Public
relations can be through seminars, charitable donations and sponsorship and personal
selling through door to door and directly inviting customers.
However, the wine processors tend to use or adopt the common marketing
communications since they are just small scale so they will encounter these problems in
promoting their products like high cost of promotion, lack of capital, lack of information
about promotional strategies, competition, packaging and costly material.
Table 3 presents the marketing communications adopted by wine processors. It shows that
in advertising (product), they adopt labeling (100%) to providesome information about
their products which includes net content, processor, ingredients, name of product, address
and contact number and branding (100%) which includes the brand name and
design.According to the respondents they adopted such promotional tool because it is part
of their business and because of its affordability. Sales promotion in terms of free taste
(100%) is also used as one of their strategies in order to sell and satisfy their customers on
the quality of their products. In addition, free delivery (93.33%) is also adopted which
according to the processors attract more customers. On the other hand, participation in
trade fairs (46.67%) is also practiced as part of the sales promotions of the processors since
this is a good avenue for them to promote or introduce their products to a wide variety and
great number of customers to the various locations. Plain product display (33.33%) is also
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
considered by some processors but is usually done through their market outlet like the
LaTrinidad Organic Practitioners (LaTOP) market in addition to the stalls in front of their
residences.
Table 3. Marketing communication tools adopted by wine processors
REASONS
COMMUNICATION
Easily
Free taste is
Customers
TOOLS
receive
needed for the Affordable will see the
feedback
customers to
product
buy
f
%
f
%
f
%
f
%
Advertising
Labeling
-
-
-
-
-
-
15
100
Branding
-
-
-
-
-
-
15
100
Sales Promotion
Plain product display
-
-
-
-
15
100
3
20
Participation in trade fairs
-
-
-
-
15
100
-
-
Free taste
-
-
4
26.67
15
100
-
-
Free delivery
-
-
-
-
15
100
-
-
Personal selling
Face to face
15
100
-
-
-
-
-
-
*Multiple Responses
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Barriers Affecting the Effective Marketing
Communications of Wine Processors
As shown in Table 4, credit (66.67%) is the major barrier affecting the
implementation of an effective marketing communications of the wine processors.
According to the respondents, credits made by their customers are affecting their
operation as this will limit their production and since they have limited capital. However,
sometimes the processors cannot avoid these credits since these are made especially by
their loyal customers who usually buy in bulk. One barrier they have encountered was lack
of capital (60%), which as a result makes the processors to produce a little volume. Another
barrier is their competitors (46.67%) who are beyond their control. The processors claimed
that no matter how good their wine products are when there are others who often produce
low quality and offer low price to the customers, this may hinder their goals of building an
effective marketing communications or promotions for their wine products.
Ways in Overcoming the Barriers
Table 5 presents the different ways employed by the processors in overcoming the
barriers. Majority of the processors (66.67%) believed that one way to avoid high account
receivables is through installment basis since this will prevent the customers whoare not
paying their credit. The processors cited that offering credit is a way ofcommunicating or
promoting their product. And in order to facilitate this, the following means are being
employed by the processors such as selecting customers or outlets (26.67%), they just
ignore/neglect customers who will not pay (20%) and through consignment (6.67%).
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Table 4. Barriers affecting wine processors in communicating their product
BARRIERS
FREQUENCY PERCENTAGE
Lack of capital
9
60.00
Competitors
7
46.67
Credit
10
66.67
*Multiple Responses
Table 5. Ways in overcoming barriers
WAYS IN OVERCOMING BARRIERS
FREQUENCY PERCENTAGE
Select customers/outlets
4
26.67
Installment basis
10
66.67
Consignment
1
6.67
Ignore/neglect customers who will not pay
3
20
*Multiple Responses
Assessment on the Perceptions of Wine Processors
Towards Cost Efficiency of the Marketing
Communication
Table 6 presents the perception of wine processors towards cost efficiency of the marketing
communications they adopted or used. The respondents perceivedthe marketing
communications as efficient as indicated by the mean which ranged from 1.7 to 2.4.
Some respondents claimed that in promoting their products can add costs on their part.
However, they said that the sales promotion through free taste, free delivery, plain product
display and participation in trade fairs, advertising its own product through labeling (net
content, processor, ingredients, name of the product, address and contact number) as
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
efficient because it is expensive and most efficient in terms personal selling like face to
face because it is least expensive.
Assessment on the Perceptions of Wine Processors
Towards Sales Effectiveness
Make sales is the main objective of wine processors it is why they communicate or promote
their products. Table 7 presents the perception of wine processors towards sales
effectiveness of marketing communications. They perceived the communication tools they
used as most effective as indicated in the mean which ranged from 1.8-3.0.
According to the respondents, they considered the labeling (net content, processor,
ingredients, name of the product, address and contact number) and branding (brand name
and design) in advertising their products as most effective because it adds volume of sales
from 51 to 100%. Under sales promotion through free taste, free delivery, plain product
display andparticipation in trade fairs as most effective because there is high increase
volume of sales from 51 to 100% and other respondents said also as most effective because
sales increase from 51 to 100%. Lastly personal selling through face to face, they
considered as most effective because it adds volume of sales from 51 to 100%.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Table 6. Assessment on the perceptions of wine processors towards cost efficiency
MEASURE
COMMUNICATION TOOLS
ME
E
NE
WEIGHTED MEAN
(3)
(2)
(1)
Advertising
Labeling
6
9
0
2.40
Branding
6
9
0
2.40
Sales Promotion
Plain product display
6
9
0
2.40
Participation in trade fairs
5
10
0
2.33
Free taste
0
14
1
1.87
Free delivery
1
14
0
2.07
Personal Selling
Face to face
15
0
0
3.00
LEGEND:2.5 – 3.0 – Most Efficient1.8 – 2.4 – Efficient1.0 – 1.7 – Not Efficient
Table 7. Assessment on the perceptions of wine processors towards effectiveness of sales
MEASURE
COMMUNICATION TOOLS
ME
E
NE
WEIGHTED MEAN
(3)
(2)
(1)
Advertising
Labeling
15
0
0
3.00
Branding
15
0
0
3.00
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Table 7. Continued. . .
MEASURE
COMMUNICATION TOOLS
WEIGHTED MEAN
ME
E
NE
(3)
(2)
(1)
Plain product display
10
5
0
2.67
Participation in trade fairs
8
7
0
2.53
Free taste
13
2
0
2.87
Free delivery
12
3
0
2.80
Personal selling
Face to face
15
0
0
3.00
LEGEND: 2.5 – 3.0 – Most Effective1.8 – 2.4 – Effective1.0 – 1.7 – Not Effective
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to assess the marketing communications of wine
processors in La Trinidad, Benguet.
Specifically, the study aimed to identify the objectives of wine processors in
communicating their products; identify the marketing communications/promotional mix
adopted and the reasons of wine processors in adopting such promotional mix; determine
the barriers affecting the implementation of an effective marketing communications
adopted by wine processors; identify the ways employed by wine processors in overcoming
these barriers, and identify the perception of processors toward the efficiency and
effectiveness of the marketing communications adopted.
The study was conducted in La Trinidad, Benguet from December 2012 to January
2013 using a survey questionnaire.
Among the 15 respondents, 93.33% of the respondents were engaged in strawberry
wine and majorityof them(53.33%) were engaged in wine processing from 1-5 years.
Great majority of the respondents have claimed that their objective in
communicating their product was to make sales.Thecommunication tools they adopted
were advertising through labeling (100%) and branding (100%) of the product, sales
promotion through free taste (100%) and free delivery (93.33%), and their reasons in
adopting is because of its affordability (100%), one reason of the respondents in adopting
plain product display as one of their communication tools is for the customers will see their
products (100%) and they will easily receive feedback (100%). The barriers they
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
encountered was credit and the waysemployed was installment basis. The communication
toolswere most effective (sales promotion, personal selling and advertising), most efficient
(personal selling) and efficient (advertising and sales promotion) as perceived by the wine
processors.
Conclusions
Based on the findings, the following conclusions were derived:
1. Great majority of the wine processors were engaged in strawberry wine.
2. The main objective of the wine processors in communicating their products was
to make sales.
3. All of the processors adopted the communication tools like advertising through
labeling and branding of the products, sales promotion through free taste, free delivery,
plain product display and participation in trade fairs and personal selling through face to
face selling of the products. The reasons of wine processors in adopting such promotional
mixwere due to its affordability, it is easily seen by the customers (plain product display)
and it easily receives feedback.
4. The barrier encountered by wine processors was credit and the ways they
employed in overcoming this barrier was through installment basis.
5. All of the marketing communications adopted were most effective (sales
promotion, personal selling and advertising), most efficient (personal selling) and efficient
(advertising and sales promotion) as perceived by the wine processors.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
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Recommendations
1. The processors should continue or maintain the communication tools adopted
because based from the results of the study, it shows that the use of these promotional tools
have increased the volume of products sold. However the processors should also try to
consider the other tools in communicating their products to attract more customers thus
maximizing their profits.
2. The processors having problems on credit made by their customers should
develop payment scheme that will ensure faster and more effective collection of the credit
aside from employing installment basis. According to the respondents, the high amount of
credit hinders the processors in ensuring continuous operation of the business, thus the
development of system of collecting credit could solve this problem.
3. Moreover, the processors could seek assistance from concerned government
agencies like Department of Trade and Industry (DTI), Department of Tourism (DOT) and
Department of Science and Technology (DOST) with regards to improving their product
and business operation and a more effective way of introducing or promoting it to the
customers. Consequently, the processors must abide with the requirements of these
agencies.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
LITERATURE CITED
ALLEN, M. E. 2006. How to Develop and maintain quantity. Second Edition. P. 7.
ARMSTRONG, G. and KOTLER, P. 1991. Principles of Marketing. Prentice -Hall, Inc. P.
45.
ARMSTRONG, G. and KOTLER, P. 2004. Principles of Marketing. Pearson Education,
Inc. Tenth Edition. Pp. 285-286; 287-288.
BERKOWITZ, E., STEVEN H., ROGER K., and WILLIAM R. 2006. Marketing.
McGraw-Hill Companies, Inc. Eight Edition. P. 299.
BOVEE, C. L. and THILL, J. V. 2000.Business Communication Today. Prentice Hall. Pp.
17-20.
BURNETT, J. and MORIARTY, S. 1998. Introduction to Marketing Communications: An
Integrated Approach. Prentice Hall. P. 3.
COOPER, D. R. and SCHINDLER, P. S. 2006. Marketing Research. McGraw-Hill Irwin.
P. 5.
d’ AMICO, M. and ZIKMUND , W.G. 2002. Marketing. South-Western. Third Edition.
Pp. 246-247.
ETZEL, M. J., WALKER B. J. and WILLIAM J. S. 2007. Marketing. McGraw-Hill.
Companies, Inc. Fourteenth Edition. P. 272.
FERRELL, O. C. and PRIDE, M. P. 2000. Marketing Concepts and Strategies. Houghton
Mifflin Company. Pp. 440-443.
FILL, C. 2011. Essentials of Marketing Communications. Prentice Hall. Pp. 9-11.
KOTLER, P. 2000. Marketing Management. Prentice Hall, Inc. The Millennium Edition.
Pp. 550-552; 566-588.
KOTLER, P. 2004. Marketing Management. Prentice Hall, Inc. The Millennium Edition.
Pp. 40-41.
HAIR Jr. J., CHARLES W. L. and CARL M. 2006. Introduction to Marketing. Eight
Edition. Pp. 484-485.
MAXIMO, S. 2011. Consumer’s Preferences on the Selected Kinds of Wine in La
Trinidad, Benguet. Unpublished BS Thesis.Benguet State University. La Trinidad,
Benguet. P. 1.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
BAWAS, JENELYN S. April 2013. Assessment on Marketing Communications of
Wine Processors in La Trinidad, Benguet. Benguet State University, La Trinidad, Benguet
Adviser: Samuel L. Duyan, BSc.
ABSTRACT
The study on the assessment on marketing communications of wine processors in
La Trinidad, Benguet aimed to identify the objectives of wine processors in communicating
their products; identify the marketing communications/promotional mix adopted and the
reasons of wine processors in adopting such promotional mix; determine the barriers
affecting the implementation of an effective marketing communications adopted; identify
the ways employed by wine processors in overcoming these barriers, and identify the wine
processor’s perceptions toward the efficiency and effectiveness of the marketing
communications adopted.
Most of the respondents produced strawberry wine and majority of them were
engaged from 1-5 years in wine processing.
Great majority of the respondents have claimed that their objective in
communicating their products was to make sales. The communication tools they adopted
were advertising through labeling (100%) and branding (100%), sales promotion through
free taste (100%) and free delivery (93.33%), and the reasons for adopting such
communication tools include the affordability (100%), easily seen by the customers
(100%), and the ease of receiving feedback from their customers (100%). The major barrier
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
encountered by the processors was the credit made by customers and the solution employed
to at least minimize credit build-up is through installment basis. The communication tools
in terms of efficiency were perceived to be most efficient (personal selling) and efficient
(sales promotion such as free taste, free delivery, participation in trade fairs and plain
product display) while in terms of effectiveness, the communication tools such as the
personal selling, sales promotion and advertising (labeling and branding) were perceived
to be most effective.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
INTRODUCTION
Rationale
The word wine comes from Latin vinum, akin to Greek oinos, which means grape
wine.
Wines are also made from other fruits other than grapes which include cherry,
plums, and pears. These fruits are home fermented products, but some are manufactured
commercially as well.
In the Province of Benguet, wine production is emerging as a promising enterprise.
Wines that are being produced are strawberry wine, bugnay wine, yacon, blueberry, and
rice wine. Wine production was able to penetrate the different festivals in the province.
Moreover, La Trinidad is one of the fastest growing cottage industries in Benguet
gaining much popularity and demand is strawberry wine making. Strawberry farming is
suitable to this place because of its cool climate (Maximo, 2011).
In connection, communication is an interactive dialogue between company and its
customers that takes place during the pre-selling, consuming and post consuming stages.
People can communicate through traditional media such as newspapers, radio, telephone
and television, as well as through the new innovations of media forms such as computers,
fax machines, cellular phones, social networking sites and pagers (Kotler, 2000).
Processors should develop communication strategies on how they communicate
with customers in order to have more and loyal customers. As a processor, they are going
to see “what their customer’s needs”, “what should be developed”, “what the customer
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
mostwant in the product”. Also, processors should maintain their relationships with their
customer in order to have a good or effective communication between them.
Statement of the Problem
The study aimed to answer the following questions:
1. What are the objectives of wine processors in communicating their product or
business?
2. What are the marketing communications adopted and the reasons of wine
processors in adopting such marketing communication/promotional mix?
3. What are the barriers affecting the implementation of an effective marketing
communication adopted by the wine processors?
4. What are the ways employed in overcoming the barriers of an effective
communication? and,
5. What are the perceptions of the wine processors toward efficiency and
effectiveness of the marketing communications adopted?
Objectives of the Study
The study aimed to:
1. Identify the objectives of wine processors in communicating their product or
business;
2. Identify the marketing communications adopted and the reasons of wine
processors in adopting such marketing communication/promotional mix;
3. Determine the barriers affecting the implementation of an effective
marketing communications adopted by wine processors;
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
4. Identify the ways employed in overcoming the barriers of an effective
communications; and,
5. Identify the perceptions of the wine processors toward the efficiency and
effectiveness of the marketing communications adopted.
Importance of the Study
The study was important in determining the communication process among wine
processors and in identifying the barriers affecting their implementation of an effective
communication. The result can further help the processors in formulating a winning and
more effective communication strategy to increase or improve their sales.
The results could also serve as reference to other researchers who will be dealing
on the same scope of study.
Scope and Delimitation of the Study
The study focused in the assessment on marketing communication of wine
processors in La Trinidad, Benguet specifically the objectives of wine processors in
communicating their product or business, marketing communications adopted and the
reasons of wine processors in adopting such marketing communications/promotional mix,
barriers affecting the implementation of an effective marketing communications adopted
by the wine processors, ways employed in overcoming the barriers of an effective
communications, and identify the most efficient and most effective marketing
communications adopted by the wine processors.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
REVIEW OF LITERATURE
Marketing
According to Cooper and Schindler (2006), marketing is an original function and set of
processes for creating, communicating, and delivering value to customers and for
managing customer relationships in ways that benefit the origin and its stakeholders. It is
the process of influencing voluntary exchange transactions in which one party to the
transaction can be envisioned in some fashion as a customer of the other, the marketer. The
marketing process involves communication and requires a mechanism or system to carry
out the exchange of the marketer’s product for something of value.
Communication
Communication is the process by which we exchange or share meaning through a common
set of symbols. When a company develops a new product, changes an old one, or simply
tries to increase sales of an existing good or service, it must communicate its selling
message to potential customers. Marketers communicate information about the firm and
its products to the target market and various publics through its promotion programs (Hair
Jr. et al., 2006).
Communication can be divided into two major categories, the interpersonal
communication and mass communication. Interpersonal communication is direct, face-to-
face communication between two ormore people. When communicating face-to-face,
people see the other person’s reaction and can respond almost immediately. A sale person
speaking directly with a client is an example of marketing communication that islarge
audience. A great deal of marketing communication is directed to consumers as a whole,
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
usually through a mass medium such as television or newspapers. When a company
advertises, it generally does not personally know the people with whom it is trying to
communicate. Furthermore, the company is unable to respond immediately to costumers’
reactions to its message. Instead, the marketing manager must wait to see whether people
are reacting positively or negatively to the mass communicated promotion. Any clutter
from competitors’ messages or other distractions in the environment can reduce the
effectiveness of the mass communication effort.
Marketing Communication
Marketing communication is the process of effectively communicating product
information or ideas to target audiences. No business can operate in every market to satisfy
everyone’s need. Instead, a company succeeds when it targets a market of those people
most likely to be interested in its marketing program. The target audience is a group of
people who receives marketing messages and has significant potential to respond to the
messages (Burnett and Moriarty, 1998).
Role of Marketing Communication
Organizations communicate with a variety of audiences in order to pursue their marketing
and business objectives. Marketing communications can be used to engage with a variety
of audiences and in such a way that meet the needs of the audience. Messages should
encourage individual members of target audiences to respond to the focus organization (or
product/brand). This response can be immediate through, for example, purchase behaviour
or use of customer care lies, or it can be deferred as information is assimilated and
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considered for future use. Even if the information is discarded at a later date, the
communication will have attracted attention and consideration of the message (Fill, 2011).
The reason for using marketing communications will vary according to the prevailing
situation or context but the essential goal is to provoke an audience response. This response
might be geared to developing brand values and the positive thoughts an individual might
have about a brand. This is grounded in a “thinking” and orientation, a combination of both
thoughts and emotional feelings about a brand. Another type of response might be one of
that stimulates the audience to act in particular ways. Referred to as a behavioural brand
response, the goal is to ‘encourage particular behaviours’.
Tasks of Marketing Communication
According to Bowersox and Morash (1989) as cited by Fill (2011) that communication
plays an important part in the process through which information flows as it can help
accomplish one or more key tasks.
First, marketing communications can act as differentiator, particularly in markets where
there is little to separate competing products and brands. Second, communications can also
be used to reinforce experiences and beliefs. This may take the form of reminding people
of a need they might have or reminding them of the benefits of past transactions with a
view to convincing them that they should enter into similar exchange.
In addition, it is possible to provide reassurance or comfort immediately prior to an
exchange or more commonly, post purchase. This is important as it helps to retain current
customers and improve profitability, an approach to business that is much more
costeffective than constantly striving to lure new costumers. Brands are often refresh, in
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order that they maintain currency among the target audience and remain competitive. The
third task identified was that communication can inform and make potential costumers
aware of an organization’s offering. No purchase can be made without prior awareness.
Sometimes audiences need to be educated, shown how to use a product or services or
advised about why a product or services or advised why a product might be helpful. The
fourth and final tasks is to use communication to persuade current and potential customers
of the desirability of either trialling a product, buying a product or enter into a
relationship.Therefore, communication can build images about a brand that is differentiate
it, reinforcememories and understanding, inform and make audiences aware of a brand’s
presence and finallypersuade an individual to buy and consume a product or services.
Communication Process
Kotler (2000) discussed that to communicate effectively; marketers need to understand the
fundamental elements underlying effective communication. The communication process
shows a communication model with nine elements. Two represent the major parties in
communication-sender and receiver. Two represent the communication tool-message and
media. Four represent major communication tools-encoding, decoding, response and
feedback. The last element in the system is noise (random and competing messages that
may interfere with the intended communication). The model underscores the key factors in
effective communication. Senders must know what audiences they want to reach and what
responses they want to get. They must encode their messages in a way that understands
how the target audience usually decodesmessages. Theymust transmit the messages
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through efficient media that reach the target audience and develop feedback channels to
monitor the responses.
For a message to be effective, the sender’s encoding process must mesh with the receiver’s
decoding process. The more the sender’s field of experience overlaps with that receiver,
the more effective the message is likely to be. This puts a burden on communicators from
one social stratum (such as advertising people) who wants to communicate effectively with
another stratum (such as factory workers).
The sender’s task is to get his or her message through the receiver. The target audience
may not receive the intended message for any of the three reasons, the selective attention,
selective distortion, and selective retention. Selective attention, people are bombarded by
1,600 commercial messages a day, of which 80 are consciously noticed and about 12
provoke some reaction. Selective attention explains why ads with bold headlines promising
something, such as “how to make a million”, have a high likelihood system. As a result,
receivers often add things to the message that are not there (amplification) and do not notice
other things that are there (levelling). The communicator’s task is to strive for simplicity,
clarity, interest, and repetition to get the main point across. Selective retention, people will
retain in long term memory only a small fraction of the messages that reach them. if the
receiver’s initial attitude toward the object is positive and he or she rehearses support
arguments, the message is likely to be accepted and have high recall. If the initial attitude
is negative and the person rehearses counter arguments, the messages are likely to be
rejected but to stay in long term memory. Because much of persuasion requires the
receiver’s rehearsal of his or her own thoughts, much of what called is actually self-
persuasion.
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The communicator considers audience traits that correlate with persuasibility and uses
them to guide messages and media development. People of high education or intelligence
are thought to be less persuasible, but the audience is inconclusive. Those who accept
external standards to guide their behaviour and who have a weak self-concept appear to be
more persuasible, as do persons who have self-confidence.
Methods of Communication
Methods of conveying a message can include oral, written, nonverbal and electronic
media.
Oral.People communicate with each other most often by talking, or oral
communication. Popular forms of oral communication include speeches, formal one-to-
one and group discussions, informal rumor-mill or grapevine.
Written. Written communications include memos, letters, organizational
periodicals, bulletin boards, or any device that transmits written words or symbols.
Nonverbal cues. Some of the most meaningful communications are neither spoken
nor written. The most well-known areas of nonverbal communications are body language
and verbal intonation.
Body language. Body language refers to gestures, facial configurations, and other
movements of the body.
Verbal intonation. Verbal intonation refers to the emphasis someone gives to words
or phrases.
Electronic media. Today we rely on a number of sophisticated electronic media to
carry our communications. In addition to more common media-telephone and
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publicxerographic reproduction, and host of other electronic devices that we can use in
conjunction with speech or paper to create more effective communication.
Barriers to Effective Communication
According to Bovee and Thill (2000), the following barriers to effective
communications are filtering, selected participation, emotional interference, poor listening,
cultural interferences, physical distraction, information overload and time pressures.
Filtering. Filtering is screening out or abbreviating information before a message is passed
on to someone. In business, the filters between you and your receiver are many such as
secretaries, assistants, answering machines, and voice mail, to name a few. Just getting
through by telephone can take a week if you’re calling someone who’s protected by the
gatekeepers or filters. Worse yet, information theory tells us that every relay doubles the
noise and cuts the message in half. That means your message may be distilled and probably
distorted it’s passed on to your intended receiver.
Selective participation. The receiver, in the communication process, selectively sees and
hears communications, depending on his needs, motivation, experience, background, and
other personal; characteristics. The receiver also projects his interests and expectations into
communications in decoding them.
Emotional interference. It’s difficult to shape a message when you are upset, hostile or
fearful. Your ideas and feelings often get in the way of being objective. Likewise, if the
other person is emotional, he or she may ignore or distort your message. Although it’s
practically impossible to avoid all communication when emotions are involved you should
be alert to the greater potential for misunderstanding that accompanies emotional
messages.
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Poor listening. Although most of us think we know how to listen. We all let our
minds wander now and then, plus we are especially likely to drift off when we are forced
to listen to information that is difficult to understand or that has little direct bearing on our
own lives. If we are tired or concerned about other matters, we are even more likely to lose
interest.
Cultural differences. Communicating with someone from another country is
probably the most extreme example of how different backgrounds and cultures may impede
communication. In fact, it may be one of the hardest communication barriers to overcome
– especially when your receiver’s age, education, social status, economic position, religion,
or life experience also differs substantially from yours.
Physical distraction. Communication barriers are often physical, these are bad
connections, poor acoustics, illegible copy. Although noise of this sort seems trivial, it can
block an otherwise effective message. Your receiver might be distracted by an
uncomfortable chair, poor listening, health problems, or some other irritating condition.
These are annoyances don’t generally block communication, but they may reduce the
receiver’s concentration.
Information overload. Managers receive information from both above and below. There is,
unfortunately, no automatic thermostat to regulate the input of information and turn it off
when the manager is deluged or overflowed. When managers allow themselves to be
inundated with information, given the time and cognitive limits under which they operate,
the effectiveness of communications is likely to suffer. Managers are forced to ignore or
cursorily (briefly) review many messages. Consequently they overlook or misinterpret
some messages.
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Nonverbal cues. Nonverbal communication is almost always accompanied by oral
communication. As long as the two are in agreement, they act to reinforce each other. When
nonverbal cues are inconsistent, with the oral message, the receiver becomes confused and
the clarity of the message suffers.
Time pressures. Managers operate under time pressures. Decisions must be made and
deadlines. Time pressures can create communication problems when to expedite matters,
formalchannels are short circuited, leaving some people in the dark, and when messages
are incomplete or ambiguous to the receiver. In either case, effective communication is
deterred or prevented.
Marketing Mix
The combination of a product, how it is disturbed and promoted, and its price.
Together these four components of strategy must satisfy the needs of the market(s) and, at
the same time, achieve the organizations marketing objectives. Some of the challenges
facing marketing managers in developing a marketing mix are product, price, place and
promotion.
Product. Strategies are needed for deciding what products to offer, managing existing
products over time, and dropping failed products. Strategic decisions must also be made
regarding branding, packaging, and other product features.
Branding. Branding is a basic decision in marketing products, in which an
organization uses a name, phrase, design, symbols, or combination of these to identify its
products and distinguish them from those of competitors. A brand name is any word, device
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(design, sound, shape or colour), or combination of these used to distinguish a seller’s
goods or services (Berkowitz et al., 2006).
Branding, perhaps the most distinctive skill of professional marketers is their ability to
create, maintain, protect and enhance brands of their product services. A brand is name,
term, sign, symbol, or design or a combination of these, that identifies the maker or seller
of a product or service.Consumers view a brand as an important part of a product, and
branding can add to a product.
Branding helps buyer in many ways. Brand names also tell the buyer something
about product quality. Buyers who always buy the same brand know that they will get the
same features, benefits, and seller several advantages. The brand name becomes the basis
on which the whole story can be built about a product’s special quantities. The seller’s
brand name and trademark provide protection for unique product features that otherwise
might be copied by competitors. And branding helps the seller to segment markets.
Building and managing brands is perhaps the marketer’s most important task (Armstrong
and Kotler, 2004).
Packaging. Packaging consists of all the activities of designing and producing the
container or wrapper for a product. It is intended to serve several purposes. These are to
protect the product on its way to the consumer; protect the product on its way to the
consumer; protect the product after it is purchased; help to persuade middlemen to accept
the product; and help to persuade consumers to buy the product (Etzelet al., 2007).
Kotler and Armstrong (2004) also stated that packaging involves designing and producing
the container or wrapper for a product. The package includes a product’s primary container.
It may also include secondary package that is thrown away when the product is about to be
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used. Finally, it can include a shipping package necessary to store, identify, and ship the
product. Labelling, the printed information appearing on or with the package – is also part
of packaging.
Traditionally, the primary function of the package was to contain and protect the product.
In recent times, however, numerous factors have made packaging an important marketing
tool.
Innovative packaging can give a company an advantage over competitors. In
contrast, poorly designed packages can cause headaches for consumers and lost sales for
the company. Developing a good package for a new product requires making many
decisions. First, the company must establish the packaging concept, which states that the
package should be or do for the product. Should it mainly offer product protection,
introduce a new dispensing method, suggest certain qualities about the product, or do
something else? Decisions then must be made or specific elements of the package such as
size, shape, materials, colour, text and brand mark. The elements must work together to
support the product’s position and marketing strategy.
Labelling. Labels may range from simple tags attached to products to complex graphics
that are part of the package. They perform several functions. At the very least, the label
identifies the product or brand. The label might also describe several things about the
product – who made it, where it was made, when it was made, its contents, how it is to use,
and how to use safely. Finally, the label might promote the product through attractive
graphics.
Product warranty. According to Zikmund and d’ Amico (2002), product warranty
communicates a written guarantee of a products integrity and outlines the manufacturer’s
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responsibility for repairing or replacing defective parts. It may substantially reduce the
risks the buyer perceives to be associated with the purchase.
Unfortunately, consumers often find that warranties are difficult to understand documents
written in legal jargon. Several manufacturers have made use of this fact by offering
warranties advertised as simple, short, plain English documents. Marketers who have not
taken this approach may not realize that terms like fully guaranteed, unconditionally
guaranteed, and lifetime guaranteed don’t mean much to many buyers, especially buyers
who have been disappointed with the service received on other guaranteed products.
Customer service. Customer service is one of the elements of the product mix.
Effective marketers, knowing the marketing does not end with the sale of goods, may create
competitive advantage by emphasizing the amount and quality of customer service.
Delivery service, gift wrapping, repairs and other customer services will help
marketers compete. These services, as auxiliary dimensions of the product, create and
maintain good will. They provide an opportunity to enhance consumer satisfaction with the
total product.
Services are task or activities performed for buyers or intangible that cannot be
handled or examined before purchase. Services differ in their nature and in the reasons
consumer purchase them. Consumers purchase instrumental services – typically, work
performed by others – to achieve a goal without direct involvement in the task.
Product design. Product design, that is, a product’s configuration, composition, and style-
influences most quality dimensions. Marketers must work with engineers on product
design to achieve quality goals. Assuring that the product design is aesthetically pleasing
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and fashionable often requires considerable consumer research, artistic creativity, and
product planning.
Often, costumer’s perceptions of quality are influenced by a noticeable aspect of product
design or formulation.
Product quality. Quality is defined as meeting or exceeding the needs and
expectation of the costumer. Thus, the goal of the business should be to find out what the
customer wants and then fine tune the process to ensure that they get it. The primary
dimensions of product quality include (a) performance, (b) features, (c) reliability, (d)
conformance, (e) durability, (f) serviceability, (g) aesthetics, (h) perceived quality (Allen
2006).
However, Allen (2006) stated that service quality is attracting equal or more
attention. These are: (a) responsiveness, (b) reliability, (c) accuracy, (d) knowledge, (e)
courtesy, (f) consistency, and (g) speed. These listed dimensions of product and service
quality are, in a broad sense, generic to most situations. However, every business is unique,
and if it is wise to determine the relative importance of each need. After measuring the
satisfaction levels, emphasis can be placed on improving performance in areas important
to the costumer but where the organization may be lacking in comparison to the quality
delivered by competitions.
Price. Setting the price for a product is marketing decision. Other necessary strategies
pertain to changing price, pricing related items within a product line, terms of sale, and
possible discounts. An especially challenging decision is selecting the price for a new
product. The basic price quote, before adjustment. Price adjustments may be made whenthe
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season changes, when the buyer purchases a large quality of a good, or for other reasons.
Many marketers adjust list price with discounts or rebates.
List price. List price functions as a communication tool by adding symbolic value to a good
service and by helping to position the brand in relation to competitors. A high price may
suggest a bargain, and a discount coupon or rebate may encourage purchases by people
who would otherwise not by the product.Price is closely related to other marketing
variables and cannot be discussed without simultaneous consideration of a product, place
and promotion. Pricing strategies and must support the firm’s other marketing strategies.
Discounts. The common price adjustments are discounts, reductions from the list price of
a reimbursement for performance of a specific task.
Allowances. An allowance is reduction in price, a rebate, merchandise, or something else
given an intermediary for performance of a specific activity or in consideration for a large
orders or the performance of a specific gravity.
Place. Place stands for company activities that make the product available to target
consumers/customers (Kotler and Armstrong, 1991).
A distribution channel is a set of interdependent organizations involved in the
process of making a product or service available for use of consumption by the consumer
or industrial user. A distribution channel moves good from producers to consumers. It
overcomes the major time, place, and possession gaps that separate goods and services
from those who would use them.
Promotion. Several promotional methods can be used to communicate with individuals,
groups, and organizations. When an organization combines specific methods to promote a
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particular product, that combination constitutes the promotion mix for that product (Pride
and Ferrell, 2000).
Advertising. Advertising is a paid non-personal communication about an
organization and its product transmitted to a target audience through mass media including
television, radio, the internet, newspapers, magazines, direct email, outdoor displays and
signs on mass transit vehicles. Individuals and organizations use advertising to promote
foods, services, ideas, issues and people. Advertising can perform the following functions
in business.
Awareness building. Advertising can provide an introduction to the company and
its products.
Comprehensive building. If the product embodies new features, some explaining
can be effectively performed by advertising.
Efficient reminding. If prospects know about the product but are not ready to buy,
reminder advertising is more economical than sales calls.
Lead operation. Advertisements offering brochures and carrying the company’s
phone number are an effective way to generate leads for sales representatives.
Legitimizations. Sales representatives can use tear sheets of the company’s ads to
legitimize their company and products.
Reassurance. Advertising can remind customers how to use the product and
reassure them about their purchase.
Personal selling. Personal selling is a paid personal communication that seeks to inform
customers and persuade them to purchase products in an exchange situation.
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Personal selling has both advantages and limitations when compared with
advertising. Advertising is general communication aimed at a relatively large target
audience, whereas personal selling involves more specific communication aimed at one or
more several reasons. Reaching one person through personal selling cost considerably
more than through advertising, but personal selling efforts often have greater impact on
customers. It also provides immediate feedback, allowing marketers to adjust their
messages to improve communication. It helps them determine and respond to customers’
information needs.
Public relations. While many promotional activities are focused on a firm’s
customers, other groups or publics – suppliers, stockholders, the media, educators,
government officials and society in general are important to an organization as well. To
communicate with customers and the public, a company employs public relations. Public
relation is a broad set of communication efforts used to create and maintain favourable with
one or more publics can affect a firm’s current sales and profits as well as its long term
survival.
Public relations uses a variety of tools, including annual reports, brochures, event
sponsorship and sponsorship of socially responsible programs aimed at protecting the
environment or helping disadvantaged individuals. Other tools arise from the use of
publicity, which is a part of public relations. Publicity is non-personal communication news
story from about an organization or its products, or both, transmitted through mass medium
at no charge.
Sales promotion. Sales promotion is an activity or material that acts as a direct inducement,
offering added value or incentive for the product, to resellers, salespersons, or consumers.
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Sales promotion should not be confused with promotion. It is just one part of the
comprehensive area of promotion. It appears a faster growing area than advertising.
Factors in Setting the Marketing Communications Mix
Companies must consider several factors in developing their promotional mix.
These are the type of product market, whatever to use a push or pull strategy, consumer
readiness to make a purchase, stage in the product life cycle, and the company’s market
rank (Kotler, 2004).
Type of the market. Promotional allocations vary between consumer and business
markets. Consumer marketers spend on sales promotion, advertising, personal selling and
public relations, in that order. Business marketers spend on personal selling, sales
promotion, advertising and public relations, in that order. In general, personal selling is
more heavily used with complex, expensive and risky goods and in markets with fewer and
larger sellers.
Push versus pull strategy. The promotional mix is heavily influenced by whether the
company chooses a push or pulls strategy to create sales.A push strategy involves the
manufacturer using sales force and trade promotion to induce intermediaries to carry,
promote and sell the product to end users. Push strategy is especially appropriate where
there is low brand loyalty in a category, brand choice appropriate when there is high brand
loyalty and high involvement in the category, people perceive differences between brand
before they go to store. Companies in the same industry may differ in their emphasis on
push or pull.
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Buyer readiness stage. Promotional tools vary in cost effectiveness at different stages of
buyer readiness. Advertising and publicity play the most important roles in the awareness
building stage. Customer comprehension is primarily affected advertising personal selling.
Customer conviction is influenced mostly by personal selling. Closing the sale is
influenced mostly by personal selling and sales promotion, and somewhat by reminder
advertising.
Product life-cycle stage. Promotional tools also vary in cost effectiveness at different stages
of the product life cycle. In the introduction stage, advertising and publicity have highest
cost effectiveness, followed by personal selling to gain distribution coverage and the
promotion to induce trial. In the growth stage, all tools can be toned down because demand
has its own momentum through the word of mouth. In the maturity stage, sales promotion
continues strong, advertising and publicity are reduced, and sales people give the product
only in minimal attention.
Company market rank. Market leaders derive more benefits from advertising than sales
promotion. Conversely, smaller competitors gain more by using sales promotion in their
marketing communications mix.
Definition of Term
1.Effective marketing communication. Tool, strategy or process of communication
used by wine processors that is least expensive and or communication tool that gives result
to higher volume of sales.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
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METHODOLOGY
Locale and Time of the Study
The study was conducted in La Trinidad, Benguet from December 2012 to January 2013.
La Trinidad is a first class municipality in the province of Benguet. It is bounded on the
north by the municipality of Tublay, on the south by Baguio and on the west by Sablan and
Tuba. It is popular because it is dubbed as the “Strawberry Capital of the
Philippines.”Several fruit wines are being produced in the municipality aside from its
popular strawberry wine.
Respondents of the Study
The respondents of the study were selected by means of random sampling technique. The
respondents included the processors that have at least one year in wine processing.
Data Collection
The data were conducted through survey questionnaire. Administering of the questionnaire
was done personally by the researcher.
Data Gathered
The data gathered were the objectives of wine processors in communicating their product
or business, the marketing communications and the reasons of adopting such marketing
communications, the barriers affecting the implementation of an effective marketing
communication adopted by wine processors, the ways being employed in overcoming the
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barriers of an effective communication and the assessment on the efficiency and
effectiveness of the marketing communications.
Data Analysis
The data were analysed and interpreted through descriptive statistics (such as frequency
counts, and percentage) andweighted mean.
Descriptive statistics are used to describe the basic features of the data in study. They
provide simple summaries about the sample and the measures. Together with simple
graphics analysis, they form the basis of virtually every quantitative analysis of data.
Weighted mean is the statistical tool used to determine the level of effectiveness as
perceived by the community. The weighted is a measure of central tendency. To calculate
the mean, the total number of identified strategy (the sum of all list numbers) must be
divided by the total number of identified strategy.
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RESULTS AND DISCUSSION
Respondent’s Profile
This section presents some profile of the processors which include the kinds of
wines they processed and the number of years they are engaged in wine processing.
Kinds of wines being processed. Table 1 presents the wines being processed or produced
which include strawberry, bugnay, yacon, blueberry, rice, pineapple, santol, grapes,
turmeric, ube and herbal wine 7 in 1. Since La Trinidad is one of the fastest growing
cottage industries in Benguet gaining much popularity and demand in strawberry wine
making, Table 1 shows that almost all of the processors were engaged in strawberry wine
with 93.33%. However, aside from strawberry, these processors were also engaged in other
wines such as bugnay (46.67%), yacon (53.33%), and the same 6.67 % for each of the
different kinds like grapes, pineapple, santol, blueberry, rice, turmeric and ube. In addition,
one processor is engaged in herbal wine 7 in 1 which composed of banaba, lemon grass,
blueberry, dandelion, gotocola, turmeric and honey, which according to this respondent
takes the initiative to produce a unique wine that no one has ever think of producing in the
past.
Number of years engaged in wine processing. The number of years in the business
could determine the extent of the respondents’ skills and knowledge in wine processing.
This could also measure their know how in producing quality wines based from their
experiences and learning from the past years of operation which could be useful in
providing a better and an improved wine products to the customers.
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Table 1 shows that majority of the processors (53.33%) were engaged in wine processing
from one to five years, one (6.67%) was engaged from six to ten years and only two
(13.33%) were engaged in wine processing for eleven to fifteen years.
Table 1. Respondent’s profile
PARTICULARS
FREQUENCY
PERCENTAGE
Kinds of wines processed
Strawberry
14
93.33
Bugnay
7
46.67
Yacon
8
53.33
Grapes
1
6.67
Pineapple
1
6.67
Santol
1
6.67
Blueberry
1
6.67
Rice
1
6.67
Turmeric
1
6.67
Ube
1
6.67
Herbal wine 7 in 1
1
6.67
Number of years engaged in wine processing
1- 5
8
53.33
6 – 10
5
33.33
11 – 15
2
13.33
*Multiple Responses
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Objectives of Wine Processors in Communicating
their Products
The common communication objective set by managers is sales related. This
includes increases in market share, return on investment, sales volume increases and
improvements in the value of sales made after accounting for the rate of inflation (Fill,
2011).
On Table 2, the main objective of the processors is to make sales which yielded
86.67%. It can be observed from this Table that making sales and generating profit play an
important role in doing the business. On the other hand, the second objective is to introduce
new product (20%) which aside from their local customers, they are also trying to introduce
their products to the travellers or to the foreigners who are passing through their market
outlet. Moreover, the respondents’ objectives in communicating their product were to build
product awareness and to convince customers to buy which yielded the same 16.67%.
Some of these processors are convince their customers by means of volume but specifically
giving discounts to their friends and loyal customers. The other processors have also their
own technique in convincing their customers though they did not mention how but
accordingly these techniques were effective.
Table 2. Objectives of wine processors in communicating their products
OBJECTIVES
FREQUENCY
PERCENTAGE
Build product awareness
1
6.67
Convince customers to buy
1
6.67
Make sales
13
86.67
Introduce new product or innovations
3
20
*Multiple Responses
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Marketing Communications Adopted
by Wine Processors
There are several marketing communications an entrepreneur can adopt to promote
his or her product. In terms of advertising, it can be through TV, radio, posters,
brochures/booklets and leaflets. Sales promotion such as use of coupons, plain product
display, buy one take one, participation in trade fairs, free taste and free delivery. Public
relations can be through seminars, charitable donations and sponsorship and personal
selling through door to door and directly inviting customers.
However, the wine processors tend to use or adopt the common marketing
communications since they are just small scale so they will encounter these problems in
promoting their products like high cost of promotion, lack of capital, lack of information
about promotional strategies, competition, packaging and costly material.
Table 3 presents the marketing communications adopted by wine processors. It shows that
in advertising (product), they adopt labeling (100%) to providesome information about
their products which includes net content, processor, ingredients, name of product, address
and contact number and branding (100%) which includes the brand name and
design.According to the respondents they adopted such promotional tool because it is part
of their business and because of its affordability. Sales promotion in terms of free taste
(100%) is also used as one of their strategies in order to sell and satisfy their customers on
the quality of their products. In addition, free delivery (93.33%) is also adopted which
according to the processors attract more customers. On the other hand, participation in
trade fairs (46.67%) is also practiced as part of the sales promotions of the processors since
this is a good avenue for them to promote or introduce their products to a wide variety and
great number of customers to the various locations. Plain product display (33.33%) is also
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
considered by some processors but is usually done through their market outlet like the
LaTrinidad Organic Practitioners (LaTOP) market in addition to the stalls in front of their
residences.
Table 3. Marketing communication tools adopted by wine processors
REASONS
COMMUNICATION
Easily
Free taste is
Customers
TOOLS
receive
needed for the Affordable will see the
feedback
customers to
product
buy
f
%
f
%
f
%
f
%
Advertising
Labeling
-
-
-
-
-
-
15
100
Branding
-
-
-
-
-
-
15
100
Sales Promotion
Plain product display
-
-
-
-
15
100
3
20
Participation in trade fairs
-
-
-
-
15
100
-
-
Free taste
-
-
4
26.67
15
100
-
-
Free delivery
-
-
-
-
15
100
-
-
Personal selling
Face to face
15
100
-
-
-
-
-
-
*Multiple Responses
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Barriers Affecting the Effective Marketing
Communications of Wine Processors
As shown in Table 4, credit (66.67%) is the major barrier affecting the
implementation of an effective marketing communications of the wine processors.
According to the respondents, credits made by their customers are affecting their
operation as this will limit their production and since they have limited capital. However,
sometimes the processors cannot avoid these credits since these are made especially by
their loyal customers who usually buy in bulk. One barrier they have encountered was lack
of capital (60%), which as a result makes the processors to produce a little volume. Another
barrier is their competitors (46.67%) who are beyond their control. The processors claimed
that no matter how good their wine products are when there are others who often produce
low quality and offer low price to the customers, this may hinder their goals of building an
effective marketing communications or promotions for their wine products.
Ways in Overcoming the Barriers
Table 5 presents the different ways employed by the processors in overcoming the
barriers. Majority of the processors (66.67%) believed that one way to avoid high account
receivables is through installment basis since this will prevent the customers whoare not
paying their credit. The processors cited that offering credit is a way ofcommunicating or
promoting their product. And in order to facilitate this, the following means are being
employed by the processors such as selecting customers or outlets (26.67%), they just
ignore/neglect customers who will not pay (20%) and through consignment (6.67%).
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Table 4. Barriers affecting wine processors in communicating their product
BARRIERS
FREQUENCY PERCENTAGE
Lack of capital
9
60.00
Competitors
7
46.67
Credit
10
66.67
*Multiple Responses
Table 5. Ways in overcoming barriers
WAYS IN OVERCOMING BARRIERS
FREQUENCY PERCENTAGE
Select customers/outlets
4
26.67
Installment basis
10
66.67
Consignment
1
6.67
Ignore/neglect customers who will not pay
3
20
*Multiple Responses
Assessment on the Perceptions of Wine Processors
Towards Cost Efficiency of the Marketing
Communication
Table 6 presents the perception of wine processors towards cost efficiency of the marketing
communications they adopted or used. The respondents perceivedthe marketing
communications as efficient as indicated by the mean which ranged from 1.7 to 2.4.
Some respondents claimed that in promoting their products can add costs on their part.
However, they said that the sales promotion through free taste, free delivery, plain product
display and participation in trade fairs, advertising its own product through labeling (net
content, processor, ingredients, name of the product, address and contact number) as
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
efficient because it is expensive and most efficient in terms personal selling like face to
face because it is least expensive.
Assessment on the Perceptions of Wine Processors
Towards Sales Effectiveness
Make sales is the main objective of wine processors it is why they communicate or promote
their products. Table 7 presents the perception of wine processors towards sales
effectiveness of marketing communications. They perceived the communication tools they
used as most effective as indicated in the mean which ranged from 1.8-3.0.
According to the respondents, they considered the labeling (net content, processor,
ingredients, name of the product, address and contact number) and branding (brand name
and design) in advertising their products as most effective because it adds volume of sales
from 51 to 100%. Under sales promotion through free taste, free delivery, plain product
display andparticipation in trade fairs as most effective because there is high increase
volume of sales from 51 to 100% and other respondents said also as most effective because
sales increase from 51 to 100%. Lastly personal selling through face to face, they
considered as most effective because it adds volume of sales from 51 to 100%.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Table 6. Assessment on the perceptions of wine processors towards cost efficiency
MEASURE
COMMUNICATION TOOLS
ME
E
NE
WEIGHTED MEAN
(3)
(2)
(1)
Advertising
Labeling
6
9
0
2.40
Branding
6
9
0
2.40
Sales Promotion
Plain product display
6
9
0
2.40
Participation in trade fairs
5
10
0
2.33
Free taste
0
14
1
1.87
Free delivery
1
14
0
2.07
Personal Selling
Face to face
15
0
0
3.00
LEGEND:2.5 – 3.0 – Most Efficient1.8 – 2.4 – Efficient1.0 – 1.7 – Not Efficient
Table 7. Assessment on the perceptions of wine processors towards effectiveness of sales
MEASURE
COMMUNICATION TOOLS
ME
E
NE
WEIGHTED MEAN
(3)
(2)
(1)
Advertising
Labeling
15
0
0
3.00
Branding
15
0
0
3.00
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Table 7. Continued. . .
MEASURE
COMMUNICATION TOOLS
WEIGHTED MEAN
ME
E
NE
(3)
(2)
(1)
Plain product display
10
5
0
2.67
Participation in trade fairs
8
7
0
2.53
Free taste
13
2
0
2.87
Free delivery
12
3
0
2.80
Personal selling
Face to face
15
0
0
3.00
LEGEND: 2.5 – 3.0 – Most Effective1.8 – 2.4 – Effective1.0 – 1.7 – Not Effective
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to assess the marketing communications of wine
processors in La Trinidad, Benguet.
Specifically, the study aimed to identify the objectives of wine processors in
communicating their products; identify the marketing communications/promotional mix
adopted and the reasons of wine processors in adopting such promotional mix; determine
the barriers affecting the implementation of an effective marketing communications
adopted by wine processors; identify the ways employed by wine processors in overcoming
these barriers, and identify the perception of processors toward the efficiency and
effectiveness of the marketing communications adopted.
The study was conducted in La Trinidad, Benguet from December 2012 to January
2013 using a survey questionnaire.
Among the 15 respondents, 93.33% of the respondents were engaged in strawberry
wine and majorityof them(53.33%) were engaged in wine processing from 1-5 years.
Great majority of the respondents have claimed that their objective in
communicating their product was to make sales.Thecommunication tools they adopted
were advertising through labeling (100%) and branding (100%) of the product, sales
promotion through free taste (100%) and free delivery (93.33%), and their reasons in
adopting is because of its affordability (100%), one reason of the respondents in adopting
plain product display as one of their communication tools is for the customers will see their
products (100%) and they will easily receive feedback (100%). The barriers they
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
encountered was credit and the waysemployed was installment basis. The communication
toolswere most effective (sales promotion, personal selling and advertising), most efficient
(personal selling) and efficient (advertising and sales promotion) as perceived by the wine
processors.
Conclusions
Based on the findings, the following conclusions were derived:
1. Great majority of the wine processors were engaged in strawberry wine.
2. The main objective of the wine processors in communicating their products was
to make sales.
3. All of the processors adopted the communication tools like advertising through
labeling and branding of the products, sales promotion through free taste, free delivery,
plain product display and participation in trade fairs and personal selling through face to
face selling of the products. The reasons of wine processors in adopting such promotional
mixwere due to its affordability, it is easily seen by the customers (plain product display)
and it easily receives feedback.
4. The barrier encountered by wine processors was credit and the ways they
employed in overcoming this barrier was through installment basis.
5. All of the marketing communications adopted were most effective (sales
promotion, personal selling and advertising), most efficient (personal selling) and efficient
(advertising and sales promotion) as perceived by the wine processors.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
Recommendations
1. The processors should continue or maintain the communication tools adopted
because based from the results of the study, it shows that the use of these promotional tools
have increased the volume of products sold. However the processors should also try to
consider the other tools in communicating their products to attract more customers thus
maximizing their profits.
2. The processors having problems on credit made by their customers should
develop payment scheme that will ensure faster and more effective collection of the credit
aside from employing installment basis. According to the respondents, the high amount of
credit hinders the processors in ensuring continuous operation of the business, thus the
development of system of collecting credit could solve this problem.
3. Moreover, the processors could seek assistance from concerned government
agencies like Department of Trade and Industry (DTI), Department of Tourism (DOT) and
Department of Science and Technology (DOST) with regards to improving their product
and business operation and a more effective way of introducing or promoting it to the
customers. Consequently, the processors must abide with the requirements of these
agencies.
Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013
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Assessment on Marketing Communications of Wine Processors in La Trinidad, Benguet
BAWAS, JENELYN S. April 2013