BIBLIOGRAPHY VIRGO, IRENE B. APRIL...
BIBLIOGRAPHY
VIRGO, IRENE B. APRIL 2013. Marketing Practices of Eateries in Tuba, Benguet.
Benguet State University, La Trinidad, Benguet
Adviser: Samuel L. Duyan, BSc.
ABSTRACT
The study on the Marketing Practices of Eateries in Tuba, Benguet aimed to identify
the objectives of the business in terms of product, price, place and promotion, to know the
marketing practices adopted by the entrepreneurs towards the marketing mix, to identify
the problems encountered by the entrepreneurs in adopting the marketing mix, and to assess
the perceived best marketing practices of the respondents.
The results revealed that, majority of the respondent’s objective in terms of product
was to offer safe and clean food, while in pricing almost all the respondent’s objective was
to maximize their profit. In addition, in terms of place most of the respondent’s objective
was to have a location that is safe and clean, and lastly most of the respondent’s objective
in terms of promotion was to encourage the customers to keep patronizing the menu items
or enterprise.
The marketing practices of the respondents revealed that the respondents practiced
some of the given product offerings and majority of them had their own facilities and
amenities. Furthermore, they rarely offered other services like catering, take-out and free
food for bus drivers. They often adopted competition-based pricing and cost-based pricing.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
The target market of the respondents were the passengers and drivers, on the other hand,
the respondents rarely made internal arrangement with bus, jeep, and van drivers and/or
operators and practice free delivery. Moreover, the respondents promoted their product
using plain product display and by inviting customers directly.
The marketing problems included the offering of the same menu, limited menu
items, inadequacy of parking space, not affordable price to some customers, price
competition, lack of capital, high cost of promotion, lack of knowledge about the
promotional strategies and inaccessibility of promotional media.
As to the assessment on the perceived best marketing practices most of the
respondent’s agree on the variables used in assessing the best marketing practices.
Nevertheless, the respondents are undecided in relation to whether the cost of promotion
is within the allowable budget and whether promotions increase the number of customers.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
INTRODUCTION
Rationale
Marketing is one of the most important components required for sustainable operation of
micro, small and medium enterprise. An entrepreneur needs to have a market oriented
approach at all level stage in life cycle of enterprise development.
The process of marketing involves three key steps; in the first step, the buyer’s needs, tastes
and preferences are identified. The second step, the buyer needs, tastes and preferences are
converted to product. The final step is that of delivering the product to the customers or
buyers.
Many businesses have succeeded, but there are also those which failed. One reason can be
due to less attention devoted on the marketing aspect of the business and also many of the
business owners lack the marketing orientation needed in marketing their products and in
satisfying their customers.
Therefore, if the business has been positioned to market place, it is now the time that the
owners develop marketing mix, in other word to decide about the most effective
composition of the four components of marketing mix, namely; product, price, place, and
promotion in order for the business to succeed.
The Municipality of Tuba is located in the southern portion of Cordillera Mountain Ranges
that extends from the Northwestern tip of Luzon towards Pangasinan. Travelers bound to
the City of Baguio pass through the Municipality of Tuba via any of the three main
thoroughfares, namely: Kennon Road, Marcos Highway, and Quirino (formerly Naguilian
Road).
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Along with these main roads are many Eateries. Tuba considered these business as one
potential as it contributes to economic development on the municipality. The study focused
on the objectives of the business, their common marketing practices and the problems
encountered.
Statement of the Problem
The study was conducted at Tuba, Benguet. Specifically, it aimed to answer the following
questions:
1. What is the profile of the business?
2. What are the objectives of the business in terms of product, price, place and
promotion?
3. What are the marketing practices of the entrepreneurs towards the marketing
mix?
4. What are the problems encountered by the entrepreneurs in adopting the marketing mix?
and,
5. What is the perceived best marketing practice of the respondents?
Objectives of the Study
The objectives of the study are the following.
1. To identify the profile of the business;
2. To identify the objectives of the business in terms of product, price, place and promotion;
3. To know the marketing practices adopted by the entrepreneurs in towards the marketing
mix;
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
4. To identify the problems encountered by the entrepreneurs in adopting the
marketing mix; and,
5. To assess the perceived best marketing practices of the respondents.
Importance of the Study
This study would help the business owners to formulate new marketing mix. As time
change, many environmental factors affect the business, therefore new strategies should be
formulated or studied. This will also promote understanding of various practices done by
the entrepreneurs and help find out how existing strategies can be improved to be more
effective. The findings could help the entrepreneurs in the accumulation of knowledge on
marketing mix, activities and problems in marketing their commodities. Furthermore it
would serve as a reference for future research.
Scope and Delimitation of the Study
The study was conducted in Tuba, Benguet. The study will be limited to the profile of the
business, their objectives, their marketing practices and the problems encountered by the
entrepreneurs.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
REVIEW OF LITERATURE
Marketing Management
A continuous process that’s occurs at all levels of an organization and across all the
business functions. At the total organizational levels, marketing management involves
creating and maintaining the organizations culture-a set of values and beliefs about the
necessity of satisfying customer’s needs. These values and beliefs dictate that the long-
term cooperatives relationships should be built and maintained through an analysis of
market structure, customer behaviour, and positioning within the value-adding process.
At the strategic business units (SBU) or divisional levels, marketing management involves
strategy–defining how the organization is to compete within the market and focusing on
the market segmentation and target positioning of goods/services, and deciding when and
how to partner. At the operating managements develops tactics–specifics about the
marketing
mix
(Product
offering,
place/distribution
policies,
pricing,
promotion/communication)–and manages customers and reseller relationships (Anderson
and Vincze, 2000).
Marketing management is the process of planning, executing, and controlling marketing
activities to attain marketing goals and objectives effectively and efficiency (Zikmund and
D’ Amico, 2002).
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Activities of the Micro, Small and Medium Enterprises
The micro, small and medium scale industry needs to look into itself and also outside.
Lim (1985) stated that the internal structure of an industry can highlight few facets which
can call attention either because they indicate strength or because they invite further
consideration for policy action. The external relation of an industry shows up its role in the
economic policies in the credit and fiscal sectors.
The industry, looking at itself must cover the following activities which are the
production, marketing, finance, and training.
1. Production. According to Snodgrass and Wallace (1975) is the transformation of two or
more inputs (resources) into one or more product. The transformation that takes place
includes the technology that the industry uses, its relative efficiency, its costs of production,
its capacity to meet market demands and the labour directed to the production and kinds of
inputs to be used, because production does not vary evenly as inputs are fed uniformly into
the production process. The volume of the production determines whether a product should
be produced in small or large quantities.
2. Marketing. Marketing is the management function responsible for assuring that every
aspect of the organization focuses on customer relationships by delivering superior value,
recognizing that the organization’s ongoing relationships are its most important assets.
The shifting rapidly from the traditional, transaction based view of microeconomics
and production efficiency to marketing as a mutually beneficial exchange process built on
the long term relationship between buyers and sellers. While both customers and products
have a major influence on marketing decision, companies are devoting more attention than
ever to the customers wants and needs. Likewise, marketing effort is more focused on
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
attracting, retaining and developing profitable relationships with employees, suppliers,
customers and others (Anderson and Vincze, 2000).
Marketing is the process of influencing voluntary exchange transaction in which
one party to be 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.
3. Finance. Deals with the momentary aspects, the efficient use and control of revenue and
expenditures, as well as capital asset and finds. An enterprise cannot grow and expand
unless financial resources are available or can be marshalled for use. However, proper
financing, according to Snodgrass and Wallace (1975) is essential to entrepreneurial
success, the right amount of funds must be expanded for inventories, adequate loans must
be arranged, sufficient fixed capital must be provided, credit must be extended wisely, and
the total physical volume of the enterprises must maintain at a level compatible with funds
available.
According to Ferrel and Hirt (2000), although management and marketing have to deal
with financial considerations, it is the primary responsibility of the owners to provide
financial resources for the operations of the business. Moreover the owners have the most
to lose if the business fails to make a profit. Finance refers to all activities concerned with
obtaining money and using it effectively.
4. Training. As mentioned by Dalisay (1975) is a process which involves many areas. It is
a system which merges from proper researches, interpretations and borrowing of all the
components that go into training programs such as the needs of the entrepreneur, trainees
and their perceptions, experiences, attitudes, knowledge and skills deemed relevant to
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
enrich their self-potentials and to improve their performance. Training is given to workers
to increase their specific job-related skills and to improve their productivity.
Marketing Mix Element
Rue and Holland (1986) states that marketing mix strategy is also familiar as the form P’s
of marketing (product, price, place, promotion) provides a good starting point for
consideration of the requirements of strategy implementation in the marketing function.
Marketing strategy is an overall program based upon selecting a particular target of the
market (Jurado and Llanes, 1982).
Marketing mix helps the company to determine what goods or products to offer, to
decide what distribution mix to use, to inform customers and to determine the overall level
of price. The main concept of marketing mix depends on a number of decisions with
regards to the four major variables of the 4 P’s.
A company’s marketing managers are responsible for planning and implementing
all the activities that result in the transfer of goods or services to its customers. These
activities culminate in the marketing plan-a detailed strategy for focusing marketing efforts
on consumer needs and wants. Therefore, marketing strategy begins when a company
identifies a consumer need and develops a product to meet it. In planning and implementing
strategies, marketing managers develop the four basic components (also called the 4 P’s)
of the marketing mix (Elbert and Greffin, 2000).
Marketing mix includes the basic tools used by marketing managers to sell goods and
services to target markets (Anderson and Vincze, 2000).
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Planning and executing the conception, pricing, promotion, and distribution of ideas,
goods, and services are essential marketing activities. These interrelated and
interdependent activities are performed to encourage exchange and build relationships. The
term marketing mix describes the results of management creative efforts to combine these
activities. Faced with a wide choice of product features, messages, prices, distribution
methods, and other marketing variables, the marketing managers must select and combine
ingredients to create a marketing mix that will achieved organizational objectives (
Zikmund and D’ Amico, 2002).
Product
The goods and service offered by an organization represents more than manufacturing or
production specifications. It is a bundle of benefits that is being delivered to meet the needs
of the organization customers. In the past, superior product design or performance was
thought to be sufficient to attract large numbers and suppliers are becoming involved in
product development and managements. They are brought into design process by the
manufacturers to maximize market acceptance and purchase. Product positioning strategies
have become more finely tuned to customer needs and perceived benefits, frequently from
a value-added perspective (Anderson and Vincze, 2000).
The term product refers to what the business or nonprofit organization offers to its
perspective customers or clients. The offering may be tangible foods, such as cars; a
services, such as an airline trips; or an intangible idea, such as the importance of parents
reading to their children.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Because customers often expect more from an organization than a simple, tangible
products, the task of marketing management is to provide complete offering – a “total
products”- that’s includes not only the basic goods or services but also the “extras “that go
with it ( Zikmund and D’Amico, 2002).
Marketing begins with a product- a good, a service or an idea designed to fill a consumer
need or want. Conceiving and developing new products is a constant challenge for
marketers, who must always consider the factor of change- changing of technology,
changing consumer wants and needs, and changing economic conditions. Marketing
consumer needs often means changing existing products to keep face with emerging
markets and competitors.
Product differentiation. Producers often promote particular features of products in
order to distinguish them on the market place. Product differentiation is the creation of the
feature or image that makes a product differ enough from existing products to attract
customers (Elbert and Greffin, 2000).
Product decisions first of all involve determining just what products the consumer
wants and will buy. However, planning the wanted product also leads to the development
of related strategies. Brand names, trademarks, warranty and guarantee aspects of the
product must also be determined. The physical design and the packaging of the product
similarly must be specified. The producer must also know the anticipated life cycle of the
product-How long it will have customer appeal? And must plan to develop new products
as the good or the production line becomes obsolete. Product planning calls for continues
review of a products performance and willingness reevaluate the initial marketing strategy
(Carson, 1985).
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Branding. Another factor that tries to relate the product image or intention (name, symbol,
design). Jurado and Llanes (1982) revealed that packaging is that part of product
development which is the design of a product’s container, whose purpose is to protect the
product to enhance the product’s value to the consumers and to stimulate sales. Benefits of
packaging to the seller include protection of the product, more efficient physical
distribution, lower total cost and relatively higher sales and profit. Benefits of packaging
to the consumers relate to helping keep the product clean and uncontaminated until it is
needed. Since packaging is a part of a company’s total marketing strategy, the marketing
objectives and design and the packaging policies must be consistent with the rest of the
total strategy.
Packaging. The packaging or external container that holds and describes the products,
influences consumers attitudes and their buying decision. It is estimated that consumers
eyes linger only 2.5 seconds on each products on an average shopping trip; therefore
products packaging should be designed to attract and hold consumers attention. The
attractive packaging captures attention and makes the products stand out. A package can
perform several function including protection, economy, convenience, and promotion
(Ferrel and Hirt, 2000).
Labeling. The presentation of the important information on the package is closely
associated with packaging. The content of labeling, often required by the law may include
ingredients or contents, nutrition facts (calories, fats, etc.), care instructions, suggestions,
for use (such as recipes), the manufacturer address and toll free number and other useful
information. In this information can have a strong impact on sales? The labels of many
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
products, particularly foods and drugs, must carry warnings, instruction, certifications, or
the manufacturer’s identifications.
Price or Pricing
The second critical marketing mix tool is the price. The concept of price is the amount paid
by the customers for a certain product or service. This can also be defined as a certain value
paid by the user of a certain product. Price can make many forms, but in the final analysis
it is what a buyer pays a seller for a product, service, license or future obligation. A product
price may be termed as list price, sales or markdown price. A price for service may be
referred as fee or tuition.
In marketing mix, price is the only element that produces revenue, all other marketing mix
represent cost. Price is also one of the most flexible elements of the marketing mix where
it can be changed quickly. Price affects most the demand, the company’s sales, the market
share and profit. The price indicates to companies what to produce, and who will be their
customers.
Pricing is the decision to produces a certain good and the price charged for it are
not independent variables. Pricing decision are always complex. Even the reasonable
expectation that the firm will always correct. Infact, to initially establish itself of a new
product line, a firm may actually accept a situation in which cost exceed price.Of course
this is usually a short term strategy. Generally, profit maximization remains the long term
goal (Carson, 1985).
Rue and Holland (1986) states that pricing must be considered in relation to costs,
consistency and potential inflation. Benefits of well-conceived pricing include increasing
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
sales to current customers, attracting new customers, maximizing short-run cash flow, and
maintaining an established position. Pricing product through the prevailing price is another
strategy in commonly practiced. The price for the service is reasonable and fair; moreover,
much competition was noted with the presence of the same services with in the vicinity
(Mahmood, 1996).
According to Zikmund and d’ Amico (2002), price is the money or something else of value
and a given in exchange for something. In other words, price is what is exchanged for a
product. The customer typically buys products with cash or credits, but the price maybe a
good or service that is traded. In not-for-profit situation, price may be expressed in terms
of volunteered time or efforts, votes, or donations.
Marketers must determine the best price for their products. To do so, they must ascertain a
products value, or what is worth to consumers. Once the value of the product is established,
the marketers know what price to charge. However, because consumer’s evaluations of a
product worth change over time, prices are subject to rapid change.
According to Anderson and Vincze (2000), price is basically the amount a customer is
willing to give up to obtain a desired good or service. Traditional pricing approaches tended
to be cost–based and adjusted according to the demand and price elasticity, indicators of
what the customer was willing to pay. Today, the focus is on pricing strategies such as
everyday low prices, price quality value, and value added. These are but a few of the “buzz
words” that characterize the current and evolving approach to pricing. Consumers and
organizational customers want real value for their money. However, value is determined
by the relationships between quality and price; the better the quality for the price charged,
the higher is the perceived value of purchase.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Place (Distribution)
Place is usually referred to as the channel or distribution. This has been very important in
business. It is very important to have the product at the right place. Having the product at
the right place is to go near the target customer. Bringing the product to the target customer
is to minimize cost in the business. The purpose is to make the product available and
accessible to target customers.
Traditional concept of physical distribution typically started at the plant and
involved bringing low cost solution to get them to customers.
The distribution system brings the product or service to the place where it can best fill
customer’s needs. Access to distribution can mean the difference between success and
failure for a new product (Rue and Holland, 1986).
Placing a product in the proper outlet-say, a retail store requires decisions about
several activities, all of which are concerned with getting the product from the producer to
the consumer.
According to Anderson and Vincze (2000), the place or distribution element of the
marketing mix refers to the channels and/or location that the sellers use to reach their
buyers. For example, direct sales from manufacturer to final customer represent the shortest
channel. Longer channel may involve manufacturer, one or more wholesalers or agents,
retailers, and final consumers.
Place or distribution, activities involve bridging the physical separation between buyers
and sellers to assure that products are available at the right place. Determining how goods
get to the customer, how quickly, and in what condition are decision that are made to place
products where and when buyers wants them. Transportation, storage, materials handling,
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
and the like are physical distribution activities. Selecting wholesalers and retailers or
choosing to be an e-commerce company operating exclusively on the internet is decision
about the structure and extents of distribution.
Promotion
Once the critical product and pricing decision have been made, the marketing managers
must determine the appropriate means in promoting the product. In general, a useful, well
designed and fairly priced products will go unsold unless people know about it.In a few
exceptions, words and mouth can sustain consumers demand, but a firm must usually
promote its goods extensively. A marketing manager must therefore plan a selling strategy
that involves the promotional tools of personal selling, advertising, publicity and sales
promotion (Carson, 1985).
According to Anderson and Vincze (2000), the promotional or communications mix
consists of all the tools that the tools that an organization uses to communicate with its
customers: advertising, personal selling, sales promotion, direct marketing, and
publicity/public relations. All organizations involved in communications strategies as they
sell to buyers at the next level. However, today, many of the traditional communication
methods are being challenged.
With the advents of sophisticated multimedia opportunities, marketers have expanded their
ability to communicate with their target customers. In addition to the traditional print and
electronic media (i.e. newspapers, magazines, direct mail, radio, television), todays
marketing messages can be transmitted by interactive television, home shopping networks,
direct mail video catalogues, computers services, and other electronics avenues. The
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
globalization of market challenges marketing managers to design and execute effective
communications programs for foreign audiences at homes and abroad.
The most highly visible components of marketing mix is no doubt promotion, which refers
to the techniques for communicating information about the product. The most important
promotional tools include advertising, personal selling, sales promotion and public relation
(Elbert and Greffin, 2000).
Advertising. Any form of paid non-personal communication used by identified sponsors to
persuade or inform potential buyers about a product.
Personal selling. Many products (for example, insurance, clothing and real estate) are best
promoted through personal selling, or person-to-person sales. Industrial goods receive the
bulk of personal selling. When companies buy from other companies, purchasing agents
and others who need technical and detailed information are usually referred to the selling
company’s sales representative.
Sales promotion. Relatively inexpensive items are often marketed through sales
promotions, which involve one time direct inducements to buyers. Premiums (usually free
gifts), coupons and package inserts are all sales promotions meant to tempt consumers to
buy products.
Public relations. Include all communication efforts directed at building good will. It seeks
to build favourable attitudes toward the organization and its products. The Ronald
McDonald house program is a well-known example of public relations.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Small Business and the Marketing Mix
The success of many businesses lies a skillful application of the marketing concepts
and careful consideration of each element in the marketing mix (Elbert and Griffin, 2000)
Small business products. Some new products and firms are doomed at the start because
few consumers want or need what they have to offer. Many fail to estimate realistic market
potential, and some offer new product before they have clear pictures of their target
segments.
Small business pricing. Haphazard pricing can even sink a firm with good product. Small
business pricing errors usually result from a failure to estimate operating expenses
accurately. Owners of failing businesses have often been heard to say “I didn’t realize how
much it costs to run the business” but when small businesses set prices by carefully
assessing costs, many earn satisfactory profits.
Small business distribution. Perhaps the most critical aspect of distribution for small
businesses is facility location, especially for new service business. The ability of many
small businesses to attract and retain customers depends partly on the choice of location.
In distribution as in other aspects of the marketing mix, however, smaller companies may
have advantages over larger competitors, even in highly complex industries.
Small business promotion. Successful small business plan for promotional expenses are
part of start-up costs. Some held down cost by using less expensive promotional methods.
Local newspapers for example are sources of publicity when they publish articles about
new or unique businesses. Other small businesses identify themselves and their products
with associated groups, organizations and events. Thus, a crafts gallery might join with a
local art league to organize public showings of their combined products.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Menu Defined
A detailed list of food items that may be ordered (as in a restaurant) or served. A menu
should reflect a particular operation mission and, therefore it will vary greatly from one
organization to the next. In the retail setting the menu is designed to attract customers and
generates sales, whereas on-sites operation plans menus to meet the needs and wants of a
known population. Regardless of the types if foodservices organizations for which menus
are being considered, careful planning, implementation, and evaluations are essentials to
the success of meeting customers’ needs and preferences within the budgetary constraints
of the organizations (Payne-Palacio and Theis, 2003).
Menu Planning
The primary goal of food service operations is to serve food that is pleasing to the
clientele. It is important to familiar with the target markets: who the consumers are, their
characteristics, and their food preferences.
Certain management’s factors must be considered. Allowing adequate time to complete
menu planning process is essential to smooth implementation of the menu. The menu
planner should aim for the best menu for the customers that optimize use of personnel and
equipment. Often a compromise must be between what food services would like to offer
and what is capable of producing and serving.
Types of Menus
Extents of selections. A selective menu includes two or more choices in some or all menu
categories. The exact number of options will vary with the different types of food services.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
The menu mix, or the selection of foods items in each food category, must be carefully
planned to meet the needs of the customers and to ensure even workloads and balanced
used of equipment’s.
Semi-selective menus. Allows one or more selections in some of the menus categories. For
examples, a long term care facility may offer two entrees and two desserts selections at
lunch and dinner, but only one choice in the vegetables and salad categories. Restaurants,
on the other hands, may offer choices of entrees accompanied by standards side dishes.
Nonselective menus. The menu that offers no choices of food items. Organizations using
the nonselective menu usually have a list of alternatives to offer in the events that a
customer does not want any of the menus items offered.
Single-use menu. The menu is planned for a certain day or events and is not repeated again
exactly the same form. This type of menu is often used for special functions, holidays, or
caterings events.
Cycle menu. A planned set of menus that rotate at definite intervals of a few days to several
weeks. The length of the cycle depends on the types of food service offered.
Static menu. The same menus are used each day. These types of menus are found in
restaurants and other foodservices where the clientele changes daily or where there are
enough items listed on the menu to offer sufficient variety.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
METHODOLOGY
Locale and Time of the Study
The study was conducted in Tuba, Benguet specifically it concentrate on the three main
roads namely; Marcos Highway, Naguilian Road and Kennon Road. The study was
conducted on December 2012 to January 2013.
Respondents of the Study
The respondents of the study were 30 owners and or the managers of the eatery business.
The researcher obtained the list of the business from the municipality of Tuba, Benguet.
Data Collection
The researcher distributed the questionnaire to the respondents. A follow–up interview was
undertaken to gather other necessary information needed in the study.
Data Gathered
The data gathered were profile of the business, their objectives, the different marketing
practices, the problems encountered by the entrepreneurs and the assessments on the
perceived best marketing practices of the respondents.
Data Analysis
The data gathered in this study were tabulated, analyzed and discussed. Descriptive
statistics using percentage and frequency were used primarily to describe the data.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
RESULTS AND DISCUSSION
Information About the Business
This section presents the brief profile or information about the eatery business studied. It
includes the number of years engaged in business, the types of business, the estimated
average operating capital, the source of capital, the staff employed which include the
number of staff and their position, and the role of the owner in the business.
Number of years engaged in business. About one- third (30%) of the respondents were
engaged in the business for 6-10 years , 20% for 11-15 years, 16.7% for 0-5 years, 13.3%
for 21-25 years and the sane 10% each for 16-20 years and 26-30years (Table 1). This
results shows that most of the respondents were engaged in the business for a numbers of
years which had given them relative experience and knowledge about their business
operation.
Types of business. Table 1 also shows that majority (63.3%) of the respondents were
classified as sole proprietorship which implied that these respondents choose to run their
business on their own. However, more than one third (36.7%) of the respondents have
decided to go on partnership.
Estimated average operating capital. Out of 30 respondents there are 36.7% whose average
operating capital is Php 1-15,000, 26.7% for Php 16,000-30,000, Php 16.7% for Php 46,000
-60,000, and the same 6.7% for Php 31,000-45,000, Php 76,000-90,000 and Php 61,000-
90,000. The data implies that the business owners are operating in small scale.
Source of capital. It can also be observed from Table 1 that majority of the respondents
provide their own capital, 43.3% borrowed their capital from different sources such as from
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
their family/ friends and relatives (61.5%), from banks with 7.7% and cooperatives with
30.8%. Among the borrowers, it implies that they prefer to source their capital from their
family/friend and relatives which accordingly offers lower interest than the formal sources
and sometimes no interest at all. Moreover, the borrowers from these formal sources yet
prefer to borrow from cooperatives as it entails lower interest than banks.
Table 1. Profile of the business
PARTICULARS
FREQUENCY
PERCENTAGE
Number of years in business
0-5
5
16.67
6-10
9
30.00
11-15
6
20.00
16-20
3
10.00
21-25
4
13.33
26-30
3
10.00
TOTAL
30
100.00
Types of business
Sole proprietorships
19
63.33
Partnerships
11
36.67
TOTAL
30
100.00
Table 1. Continued….
PARTICULARS
FREQUENCY
PERCENTAGE
Estimated operating
capital (Php)
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
1-15,000
11
36.67
16,000-30,000
8
26.67
31,000-45,000
2
6.67
46,000-60,000
5
16.67
61,000-75,000
2
6.67
76,000-90,000
2
6.67
TOTAL
30
100.00
Source of capital
Own capital
17
56.67
Borrowed capital
13
43.33
TOTAL
30
100.00
If borrowed where?
Family/friend and relatives
8
61.50
Banks
1
7.67
Cooperatives
4
30.80
TOTAL
13
100.00
Number of staff employed. Table 2 presents the number of staff employed, 6.67% of the
respondents do not employ any staff while most (93.3%) of them employ a number of staff.
Staff employed. There are 50% of the respondents who employed service crew,
cashier (36.7%), dishwasher (33.3%) and lastly cashier (26.7%).
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Role of the owner. Table 2 further shows that 33.3% of the respondent’s role is
manager, purchaser, and cashier, while 26.7% act as manager and cashier, 23.3% serves as
manager, cook and cashiers. Moreover, 16.7% respondents say that they act as a manager.
This implies that the owners are performing others tasks or job in the business aside from
being the boss.
Table 2. Profile of the business
PARTICULARS
FREQUENCY
PERCENTAGE
Number of staff employed
1
3
10.00
2
5
16.67
3
4
13.33
4
4
13.33
5
1
3.33
6
6
20.00
7
1
3.33
8
2
6.67
Table 2. Continued….
PARTICULARS
FREQUENCY
PERCENTAGE
9
2
6.67
No staff
2
6.67
TOTAL
30
100.00
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Staff employed*
Cook
11
36.67
Cashier
8
26.67
Service crew
15
50.00
Dishwasher
10
33.33
Role of the owners
Manager
5
16.7
Manager,purchaser, cashier,
10
33.3
Manager ,cook, cashier
7
23.3
Manager and cashier
8
26.7
TOTAL
30
100.00
*Multiple responses
Objectives of the Business
This presents the objectives of the business in terms of product, price, place and
promotion.
Product. According to Zikmund and D’Amico (2002), marketing begins with a product-a
good, a service or an idea designed to fill a consumer need or want. Conceiving
and developing new products is a constant challenge for marketers, who must always
consider the factor of change- changing of technology, changing consumer wants and
needs, and changing economic conditions. Marketing consumer needs often means
changing existing products to keep face with emerging markets and competitors.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 3 shows that most (83.3%) of the respondent’s objectives are to offer safe and clean
food, 73.3% is to offer different menu items so that customers have a choice, 63.3 % is to
offer good performance of employees and 56.7% is to have business identity. Furthermore
there are 46.67% of the respondent’s objectives are to ensure satisfaction and build a
repeat-customers base, the same 40% to disposed the food in a day and to develop a strong
and attractive menu with competitive price, and 33.33% is to sell delicious and remarkable
food.
Price. Pricing is the decision to produces a certain good and the price charged for it are not
independent variables. Pricing decision are always complex. Even the reasonable
expectation that the firm will always correct. Infact, to initially establish itself of a new
product line, a firm may actually accept a situation in which cost exceed price. Of course
this is usually a short term strategy. Generally, profit maximization remains the long term
goal (Carson, 1985).
Almost all (93.33%) of the respondent’s objectives are to maximize profit. There are about
56.67% of the respondents objectives is to increase market share, while 46.7% is to have
greater return on investment, 43.33% is to offer affordable product, and 33.33% is to meet
competition. The data indicate that aside from maximizing the profit, the business owners
have other reasons in engaging to business.
Place. Ninety percent of the respondent’s objectives in terms of place are to have a location
that is convenient and suitable for customers, 76.67% is to have a location that is safe and
clean, 73.33% is to have a location that is affordable yet accessible to the customers and
33.33% is to have a delightful ambiance. This result implies that the business owners
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
recognize the importance of having a location that is convenient and suitable to customers
in making sales.
Promotion. Most (80%) of the respondent’s objectives are to encourage customers to keep
patronizing the menu or enterprise. Also there are 60% of the respondents objectives are to
make people aware of the menu or enterprise, feel positive about it and remember it.
Table 3. Objectives of the business
PARTICULAR
FREQUENCY
PERCENTAGE
Product
To offer different menu items
so that customers have a choice
22
73.3
To offer safe and clean food
25
83.3
To disposed the food in a day
12
40.00
To ensure satisfaction and build
a repeat-customer base
14
46.67
To develop a strong and attractive
menu with competitive prices
12
40.00
To sell delicious and remarkable
Food
10
33.33
To have a business identity
17
56.67
Table 3. Continued…..
PARTICULARS
FREQUENCY
PERCENTAGE
To ensure that all customers are treated with the
respect they deserve
8
26.67
To offer good performance of employees
( friendly, happy host)
19
63.33
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
To offer other services like catering
5
16.67
Price
To maximize profit
28
93.33
To satisfy customers
9
30.00
To increase market share
17
56.67
To have greater return on investment
14
46.67
To meet competition ( pricing good or
service in order to adjust with competitors)
10
33.33
To offer affordable product
13
43.33
Place
To have a location that is safe and clean
26
76.67
To have a location that is affordable yet accessible
to customers
22
73.33
To have a location that is convenient and suitable for
customers
27
90.00
To have a delightful ambiance ( smell, sight
10
33.3
ex. Color, lighting, sounds)
Table 2. Continued…..
PARTICULARS
FREQUENCY
PERCENTAGE
Promotion
To make people aware of the menu/enterprise, feel
18
60.00
positive about it and remember it
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
To encourage customers to keep patronizing the
24
80.00
items/ enterprise
*Multiple responses
Marketing Practices
This section presents brief information on marketing practice of the respondents in terms
of product, price, place and promotion. The result is measured into scale of five as always,
four as often, three as sometimes, two as rarely and one as never.
Product Practices
This include the product offering, practices in offering the product, food
preparation, amenities and facilities and other services offered.
Productoffering. The finding shows that, the respondents are always offering “adobong
baboy”, “fried chicken”, “adobong manok”, “pritong tilapia”and“bangus”. In addition
there are also respondents who often offer “fried chicken”, “pinikpikan”, “sinigang na
bangus” and “pinakbet”. Furthermore, there are some respondents who claimed that their
product offerings are within the choice of the customers and usually the menu includes
“tinolang manok”, “nilagang baka”, “giniling”, “menudo”, “bulalo”, “inihaw na pork
belly”, “inihaw na bangus”, “paksiw na tilapia”, “grilled hito”, “egado”, and “bicol
express”.
Practices in offering the product. Table 4 also shows that the respondents are always
offering safe and clean food (meeting sanitary requirement as prescribed by DOH, and all
the workers have regular medical examination), serving menu items that are newly
prepared and cooked, offering free soup, offering an adequate serving, and servings
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
healthy and nutritious food. Also, the respondents are often in offering unlimited rice, and
budget meal. This implies that the first thing the respondents consider in offering product
is making sure that the food to be served is safe and clean. Furthermore, the results also
emphasized that the owners has several practices in offering product in order for them to
attract customers.
Food preparation. The practice of the respondents in food preparation is that the server
always has knowledge on the menu, always serving food that is well prepared and always
offering fast services. This shows that owners trained their staff for the familiarity on the
menu they served.
Facilities and amenities. Table 4 also shows that the respondents are having
alwayshave available amenities, adequate lighting and attractive decoration. However the
facilities and amenities often have proper ventilation and parking space, and lastly it is
rarely that business have available facilities like comfort room. This implies that there are
more eatery business that have facilities and amenities that contributes to attracting more
customers.
Other services offered. Table 4 implies that the respondents often offertake-out. The
respondents are also rarely in offering other services like catering and free food for bus
drivers. These results revealed the limited knowledge of the respondents towards offering
variety of services to their customers like catering.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 4. Product practices
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Product offerings
“Adobong baboy”
4.70
Always
“Fried chicken”
4.30
Often
“Pinikpikan”
3.53
Often
“Pinapaitan”
3.06
Sometimes
“Pritong tilapia at bangus”
4.50
Always
“Sinigang na bangus”
3.93
Often
“Pinakbet”
3.53
Often
Practices in offering the products
Offer safe and clean food (meeting
sanitary requirement and prescribed by
DOH, and all the workers have regular
Always
medical examination)
5.00
Serve menu items that are newly prepared and
cooked
4.80
Always
Offer unlimited rice
3.63
Often
Offer free soup
5.00
Always
Offer an adequate serving
4.93
Always
Offer budget meal
3.80
Often
Table 4. Continued….
PARTICULARS
WEIGHTED DESCRIPTION
MEAN
Serve healthy and nutritious food.
4.83
Always
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Server had knowledge on the menu
4.8
Always
Offer fast service
4.3
Always
The food to be served is well-prepared
4.5
Always
Facilities and amenities
Available facilities (comfort room)
2.4
Rarely
Available amenities (Television, air condition)
4.3
Always
The food to be served is well-prepared
4.5
Always
Facilities and amenities
Proper ventilation
3.9
Often
Proper ventilation
3.9
Often
Adequate lighting
4.7
Always
Attractive decoration
4.5
Always
Adequate parking space
3.8
Often
Other services
Catering
1.8
Rarely
Take-out
3.8
Often
Free food for bus drivers
2
Rarely
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 5. Pricing practice
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Basis of product pricing
Competition- based pricing
3.76
Often
Cost-based pricing
4
Often
Based on target return on investment
3.16
Sometimes
Discount
2.13
Sometimes
Pricing Practices
The respondents often price their product using competition-based pricing and cost-based
pricing. But sometimes the product is price based on the respondent’s target return on
investment and based on discounting. These results revealed that the respondents do not
concentrate only in one pricing strategy. However, the common pricing strategy used is the
competition-based pricing and cost-based pricing.
Place Practices
This section presents brief information about the practices of the respondents in terms of
target market, how they reach their customers, why they choose the location and the
description of the business.
Target market. The finding shows that the respondent’s target markets ofteninclude the
passengers and drivers, but sometimes their customers are the resident in the place and
anyone (students and employees). So, this result implies that the business do not just focus
on one target market, but anyone who wants to eat in the place.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Reaching and maintaining customers. The Table 6 also shows how the respondents reach
their customers. The result indicates that it is always through continuous improvement of
the menu and having good relationships to the customers. It shows also that the respondents
rarely enter into internal arrangement with bus, jeep, and van drivers and/or operators and
in practicing free delivery. This implies that in reachingtheir customers, continuous
improvement of the menu and having good relationships are the common practices they
used in order for them to attract and satisfy the customers.
Choosing the location. Moreover, the respondents choose the place as the location due to
its accessibility and convenience and cleanliness of the surrounding. In addition, the data
also imply that the business owners often have more customers. This implies that the first
thing they consider in choosing the place as the location is that it is convenient to the
customers and cleanliness of the surroundings, as the location is one of the preference of
the customers in choosing location where they would eat and consume time.
Description of the business. The findings further show that the business is always
presentable (attractive decoration, adequate lighting, clean), have delightful ambiance
(smell-aromatic, sounds-music). Moreover, they are often in having available facilities like
comfort roomand large space that can occupy all the customers.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 6. Place practices
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Target market
Passengers and drivers
4.27
Often
Residents
3.47
Sometimes
Anyone (students, employee, etc.)
2.46
Sometimes
Reaching the customers
Free delivery
1.9
Rarely
Internal arrangement with bus, jeep, and van
drivers and/or operators
2.03
Rarely
Continuous improvement of the menu
4.63
Always
Good customer relationships
4.4
Always
Choosing the location
Accessible and convenient
4.5
Always
More customers
3.93
Often
Cleanliness of the surroundings
4.3
Always
Description of the business
Large space can occupy all the customers
4.13
Often
Presentable (Attractive decoration,
Always
adequate lightning, and cleanliness)
4.3
Delightful ambiance (smell-aromatic scent,
Often
sounds- music)
4.2
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Promotion Practices
This section presents the information on the practices of the respondents in promoting their
products in terms of advertising, sales promotion and personal selling.
Advertising. The businesses are sometimes promoting their product using tarpaulin.
Furthermore, they never use newspapers and flyers in promoting their product in terms of
advertising. This result implies that the respondents are not promoting their product using
advertisement, but then there are some but not always which could be due to the high cost
of these promotional measures.
Sales promotion. The business owners always use plain product display in promoting their
product in terms of sales promotion. Furthermore, they never use coupons in attracting
customers.
Personal selling. The finding also shows that an entrepreneur’s one way of promoting their
product is by always inviting their customers directly. This result implies that they are not
using other promotional materials due to lack of capitals and lack of knowledge on these
promotional strategies.
Table 5. Promotion Practices
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Advertising
Newspapers
1
Never
Flyers
1
Never
Tarpaulin
3.3
Sometimes
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 5. Continued….
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Posters
1.73
Never
Sales promotion
Plain product display
5
Always
Use coupons
1
Never
Personal selling
Inviting customers directly
5
Always
LEGEND: 1-1.8 – Never 1.9-2.6- Rarely 2.7-3.4- Sometimes 3.5-4.2- Often
3-5- Always
Marketing Problems
Table 8 presents the problems of the eatery business in terms of product, price,
place and promotion.
Product. Table 8 shows the marketing problems of the respondents in offering their
product, and services.
As the results shown in Table 8, the problems of the respondents in terms of product
offering is that they are always offering the same menu (70%), is offering limited menu
(56.67%), is lack of product quality (36.67%), and the food to be served is not well-
prepared (10%). There were 50% of the respondents whosay that there problems in offering
service is inadequate facilities, no proper ventilation (33.33%). In addition, 13.33% is due
toinadequate lighting and 6.67% is due tounattractive decoration.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Pricing. The Table shows that price being not affordable to some customers (73.33%) is
the common problems of the eatery business, while 50% is the price competition. The
respondent offering is not affordable to some customers but then it is also affordable to
some.
Place. Table 8 also shows that 80% of the respondent’s problems in terms of place is less
customers, so this implies that some of the eatery business in Tuba has fewer customers,
especially to the eatery that is newly opened. Furthermore, price competition and
unattractive decoration have 43.33% and 3.3% respectively.
Promotion. This shows that lack of capital (76.67%) is the common problems of the
respondents for not promoting their product, while 56.67 is due to high cost of promotion,
33.33% is lack of knowledge about the promotional strategies and lastly 30% is
inaccessibility of the promotional media.
Table 8. Marketing problems
PARTICULARS
FREQUENCY
PERCENTAGE
Problems in offering product
to the customers
Limited menu items
17
56.67
Lack of product quality
11
36.67
Food to be served is not well prepared
3
10.00
Always the same menu
21
70.00
Problems in offering services to customers
Inadequate facilities ( parking space)
15
50.00
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 8. Continued….
PARTICULARS
FREQUENCY
PERCENTAGE
No proper ventilation
10
33.33
Inadequate lighting
4
13.33
Unattractive decoration
2
6.67
Problems on pricing
Price is not affordable to
some customers
22
73.33
Price competition
15
50.00
Problems on place
Price competition
13
43.33
Less customers
24
80.00
Unattractive surroundings
1
3.33
Problems on promotion
High cost of promotion
17
56.66
Lack of capital
23
76.67
Lack of knowledge about the promotional
strategies
10
33.33
Inaccessibility of the promotional media
9
30.00
*Multiple responses
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Assessment on the Perceived Best Marketing Practices
of the Respondents
Most of the respondents agree on the variables used in assessing the best marketing
practices. Nevertheless, the respondents are undecided in relation to whether the cost of
promotion is within the allowable budget and whether promotions increase the number of
customers.
As the results shown in the past discussion, offering safe and clean food and
offering free soup are the respondents marketing practices in terms of product as it attained
their objectives of attracting more customers and since they do not encounter any problems
with regard to this practice.
Cost-based pricing is their marketing practices in terms of price. This is shown in
the results, as there are more owners who prefer to price their product using cost-based
than based on competition.
As to place, the business is accessible and convenient to customers and the
surrounding is clean are the respondents practices as it also attained their business
objectives.
As to promotion, only plain product display and inviting customers directly are the
practices of the respondents due to lack of capital and lack of knowledge about promotional
strategies which as a results constraint them to promote their product using this promotional
tools. However, the use of plain product display and inviting customers directly as their
promotional tool increases the number of product sold.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 9.Assessment on the perceived best marketing practices
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Product
The consumers always patronize the product.
3.67
Agree
Price
The price of the product maximizes the profit.
3.97
Agree
Place
The eatery is accessible and convenient to the
customers
3.97
Agree
Promotion
There is increase in the number of customers
3.4
Undecided
There is increase in the number of product sold.
3.87
Agree
The cost of promotion is within the allowable
budget
3.13
Undecided
LEGEND: 1-1.8- Strongly disagree
1.9-2.6- Disagree
2.7-3.4- Undecided
3.5-4.2- Agree
4.3-5- Strongly agree
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
SUMMARY, CONCLUSION AND RECOMMENDATION
Summary
The study was conducted to determine the objectives, marketing practices, and
marketing problems of the eatery business in Tuba, Benguet. It also aimed to assess the
perceived best marketing practices of the business.
A survey questionnaire was used to gather necessary data from the owners of eatery
business as the respondents. Personal interview was also done to supplement the data
gathered.
The results revealed that there are more sole proprietorship forms of business than
partnership.
Majority of the respondent’s source of capital is from their own pockets, but there are some
owners who sourced their capital from external sources and it was observed that these
owners sourced their capital from their family, friends and relatives which accordingly
offers lower interest than the formal sources and sometimes no interest at all. Moreover,
the borrowers from the formal sources like banks and the cooperatives yet prefer to borrow
from cooperatives as it entails lower interest than banks.
Most (83.3%) of the respondent’s objective in terms of product is offering safe and
clean food, while in pricing almost all (93.3%) the respondent’s objective is to maximize
their profit. In addition, in terms of place most (90%) of the respondent’s objective is to
have a location that is safe and clean and lastly most (80%) of the respondent’s objective
in terms of promotion is to encourage the customers to keep patronizing the menu items or
enterprise.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
The marketing practices are measured into scale of five; (5)-always, (4)-often, (3)-
sometimes, (2)-rarely and (1)-never. Some of the respondents always practice some of the
given product offerings, majority of them have their own facilities and amenities.
Furthermore, they are rarely in offering other services like catering, take-out and free food
for bus, jeep and van drivers and/or operators.
In terms of pricing practices of the owners, they often adopt competition-based pricing and
cost–based pricing, but sometimes they are pricing their product based on their target rate
of return on investment and giving discounts to the customers.
In terms of place, the target market of the respondents are often the passengers and drivers,
but sometimes their customers include the resident and anyone, on the other hand, the
respondents rarely make internal arrangement with the bus, jeep, and van drivers and/or
operators and rarely practice free delivery.
In terms of promotion, they never promote their product using flyers, coupon,
posters and newspapers, but sometimes they are using tarpaulin. Moreover, they are always
promoting their product using plain product display and inviting customers directly.
The marketing problems in terms of product offering are always the offering of the
same menu and limited menu items. In addition in terms of offering the services the
problems encountered involved the inadequacy of parking space.
The pricing problems include the price being not affordable to some customers and
price competition.
Lack of capital is their problems in terms of promotion. Moreover, the high cost of
promotion, lack of knowledge about the promotional strategies and inaccessibility of
promotional media are also encountered.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Majority of the respondents agree to the assessment on the perceived best marketing
strategy in terms of product, price, place, and promotion. In terms of promotion the
respondents agreed that the promotional tools used increased the number of product sold
however they are undecided whether the cost of promotion is within their allowable budget.
Conclusions
Based on the findings, the following conclusions were drawn;
1. The respondent’s objective in terms of product is offering safe and clean food,
while in pricing is to maximize their profit. In addition, in terms of place m is to have a
location that is safe and clean and lastly in terms of promotion is to encourage the customers
to keep patronizing the items or enterprise;
2. Some of the respondents always practice some of the given product offerings,
majority of them have their own facilities and amenities. Furthermore, they are rarely in
offering other services like catering, take-out and free food for bus, jeep and van drivers
and/or operators;
3. The respondents are often adopt competition-based pricing and cost–based pricing,
but sometimes they are pricing their product based on their target rate of return on
investment and giving discounts to the customers;
4. The respondents target market are often the passengers and drivers, but sometimes
their customers include the residents and anyone, on the other hand, the respondents rarely
make internal arrangement with the bus, jeep, and van drivers and/or operators and rarely
practice free delivery;
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
5. The respondents never promote their product using flyers, coupon, posters and
newspapers, but sometimes they are using tarpaulin. Moreover, they are always promoting
their product using plain product display and inviting customers directly;
6. The respondents marketing problems are always offering the same menu and
limited menu items. Furthermore, almost all of the eatery businesses are not offering other
services like catering and free delivery;
7. Some of the area where the businesses are located has fewer customers; and,
8. Some eatery owners are not using any promotional tool in promoting their product
which could be due to lack of capital to promote their product. And moreover, due to lack
of information on promotional strategies.
Recommendations
1. The owners should get more information about cooking recipes to come up with
new dishes;
2. They should come-up with a new marketing strategy such as offering unlimited rice
and giving discount in order for them to attract more customers;
3. The managers should look for more strategic places since location is very important
factors in making sales;
4. The manager must therefore plan a selling strategy that involves the promotional
tools of personal selling, advertising, publicity and sales promotion;
5. The business owners could look for sources of capital offering low interest in order
to have available funds to finance the operation of their business; and,
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
6. The business owners should seek assistance from the different government agencies
like the Department of Trade and Industry (DTI), and Department of Tourism (DOT)
regarding support or assistance offered to micro-enterprise. However, these business
owners should comply with the basic and legal requirements of these agencies in order to
avail of whatever services they may opt to regarding improving their business operations.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
LITERATURE CITED
ANDERSON, C. AND VINCZE, J. 2000. Strategic Marketing Management.USA.Pp.11,
62, 4, 11-13.
CARSON R. B. 1985. Enterprise An Introduction to Business. USA. Pp.245-246.
DALISAY A. 1975. Agriculture and Rural Development in the Philippines. Manila: UP
Publication. P.5.
ELBERT, R. AND GREFFIN, R. 2000. Business Essential., New Jersey: Prentice Hall,
Pp. 247-263.
FERREL, Q.C AND HIRT, G. 2000. Business a Changing World, Third edition. USA. Pp.
4-5,331.
JURADO, T.M, AND LLANES, V.A. 1982. Marketing Principles and Practice. Pp.112-
305.
LIM, M.T. 1985. Industry Analysis for Business Policy and Planning. Manila: Sinangtala
Publishers, Inc. Pp.605-606.
MAHMOOD, Q.1996. Advertising Strategies of Two Automobile Manufacturing
Companies in the Philippines. Unpublished Thesis. Baguio College Foundation. Gov. Pack
Road, Baguio City, CHED- CAR. Pp.18-19.
PAYNE- PALACIO, J AND THEIS, M. 2003. West and Woods Introduction to Foods
Services.Prentice Hall. Pp. 86, 87, 97.
RUE, L.W. AND HOLLAND, P.G. 1986. Strategies Management Concepts and
Experiences. Pp. 553-554
SNODGRASS, M.M AND WALLACE, L.T. 1975. Agriculture, Economics and Resource
Management, New Jersey: Prentice Hall, Pp.324-325.
ZIKMUND, W. AND D’ AMICO, M. 2002. Effective Marketing, USA.Pp.9-13.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
VIRGO, IRENE B. APRIL 2013. Marketing Practices of Eateries in Tuba, Benguet.
Benguet State University, La Trinidad, Benguet
Adviser: Samuel L. Duyan, BSc.
ABSTRACT
The study on the Marketing Practices of Eateries in Tuba, Benguet aimed to identify
the objectives of the business in terms of product, price, place and promotion, to know the
marketing practices adopted by the entrepreneurs towards the marketing mix, to identify
the problems encountered by the entrepreneurs in adopting the marketing mix, and to assess
the perceived best marketing practices of the respondents.
The results revealed that, majority of the respondent’s objective in terms of product
was to offer safe and clean food, while in pricing almost all the respondent’s objective was
to maximize their profit. In addition, in terms of place most of the respondent’s objective
was to have a location that is safe and clean, and lastly most of the respondent’s objective
in terms of promotion was to encourage the customers to keep patronizing the menu items
or enterprise.
The marketing practices of the respondents revealed that the respondents practiced
some of the given product offerings and majority of them had their own facilities and
amenities. Furthermore, they rarely offered other services like catering, take-out and free
food for bus drivers. They often adopted competition-based pricing and cost-based pricing.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
The target market of the respondents were the passengers and drivers, on the other hand,
the respondents rarely made internal arrangement with bus, jeep, and van drivers and/or
operators and practice free delivery. Moreover, the respondents promoted their product
using plain product display and by inviting customers directly.
The marketing problems included the offering of the same menu, limited menu
items, inadequacy of parking space, not affordable price to some customers, price
competition, lack of capital, high cost of promotion, lack of knowledge about the
promotional strategies and inaccessibility of promotional media.
As to the assessment on the perceived best marketing practices most of the
respondent’s agree on the variables used in assessing the best marketing practices.
Nevertheless, the respondents are undecided in relation to whether the cost of promotion
is within the allowable budget and whether promotions increase the number of customers.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
INTRODUCTION
Rationale
Marketing is one of the most important components required for sustainable operation of
micro, small and medium enterprise. An entrepreneur needs to have a market oriented
approach at all level stage in life cycle of enterprise development.
The process of marketing involves three key steps; in the first step, the buyer’s needs, tastes
and preferences are identified. The second step, the buyer needs, tastes and preferences are
converted to product. The final step is that of delivering the product to the customers or
buyers.
Many businesses have succeeded, but there are also those which failed. One reason can be
due to less attention devoted on the marketing aspect of the business and also many of the
business owners lack the marketing orientation needed in marketing their products and in
satisfying their customers.
Therefore, if the business has been positioned to market place, it is now the time that the
owners develop marketing mix, in other word to decide about the most effective
composition of the four components of marketing mix, namely; product, price, place, and
promotion in order for the business to succeed.
The Municipality of Tuba is located in the southern portion of Cordillera Mountain Ranges
that extends from the Northwestern tip of Luzon towards Pangasinan. Travelers bound to
the City of Baguio pass through the Municipality of Tuba via any of the three main
thoroughfares, namely: Kennon Road, Marcos Highway, and Quirino (formerly Naguilian
Road).
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Along with these main roads are many Eateries. Tuba considered these business as one
potential as it contributes to economic development on the municipality. The study focused
on the objectives of the business, their common marketing practices and the problems
encountered.
Statement of the Problem
The study was conducted at Tuba, Benguet. Specifically, it aimed to answer the following
questions:
1. What is the profile of the business?
2. What are the objectives of the business in terms of product, price, place and
promotion?
3. What are the marketing practices of the entrepreneurs towards the marketing
mix?
4. What are the problems encountered by the entrepreneurs in adopting the marketing mix?
and,
5. What is the perceived best marketing practice of the respondents?
Objectives of the Study
The objectives of the study are the following.
1. To identify the profile of the business;
2. To identify the objectives of the business in terms of product, price, place and promotion;
3. To know the marketing practices adopted by the entrepreneurs in towards the marketing
mix;
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
4. To identify the problems encountered by the entrepreneurs in adopting the
marketing mix; and,
5. To assess the perceived best marketing practices of the respondents.
Importance of the Study
This study would help the business owners to formulate new marketing mix. As time
change, many environmental factors affect the business, therefore new strategies should be
formulated or studied. This will also promote understanding of various practices done by
the entrepreneurs and help find out how existing strategies can be improved to be more
effective. The findings could help the entrepreneurs in the accumulation of knowledge on
marketing mix, activities and problems in marketing their commodities. Furthermore it
would serve as a reference for future research.
Scope and Delimitation of the Study
The study was conducted in Tuba, Benguet. The study will be limited to the profile of the
business, their objectives, their marketing practices and the problems encountered by the
entrepreneurs.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
REVIEW OF LITERATURE
Marketing Management
A continuous process that’s occurs at all levels of an organization and across all the
business functions. At the total organizational levels, marketing management involves
creating and maintaining the organizations culture-a set of values and beliefs about the
necessity of satisfying customer’s needs. These values and beliefs dictate that the long-
term cooperatives relationships should be built and maintained through an analysis of
market structure, customer behaviour, and positioning within the value-adding process.
At the strategic business units (SBU) or divisional levels, marketing management involves
strategy–defining how the organization is to compete within the market and focusing on
the market segmentation and target positioning of goods/services, and deciding when and
how to partner. At the operating managements develops tactics–specifics about the
marketing
mix
(Product
offering,
place/distribution
policies,
pricing,
promotion/communication)–and manages customers and reseller relationships (Anderson
and Vincze, 2000).
Marketing management is the process of planning, executing, and controlling marketing
activities to attain marketing goals and objectives effectively and efficiency (Zikmund and
D’ Amico, 2002).
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Activities of the Micro, Small and Medium Enterprises
The micro, small and medium scale industry needs to look into itself and also outside.
Lim (1985) stated that the internal structure of an industry can highlight few facets which
can call attention either because they indicate strength or because they invite further
consideration for policy action. The external relation of an industry shows up its role in the
economic policies in the credit and fiscal sectors.
The industry, looking at itself must cover the following activities which are the
production, marketing, finance, and training.
1. Production. According to Snodgrass and Wallace (1975) is the transformation of two or
more inputs (resources) into one or more product. The transformation that takes place
includes the technology that the industry uses, its relative efficiency, its costs of production,
its capacity to meet market demands and the labour directed to the production and kinds of
inputs to be used, because production does not vary evenly as inputs are fed uniformly into
the production process. The volume of the production determines whether a product should
be produced in small or large quantities.
2. Marketing. Marketing is the management function responsible for assuring that every
aspect of the organization focuses on customer relationships by delivering superior value,
recognizing that the organization’s ongoing relationships are its most important assets.
The shifting rapidly from the traditional, transaction based view of microeconomics
and production efficiency to marketing as a mutually beneficial exchange process built on
the long term relationship between buyers and sellers. While both customers and products
have a major influence on marketing decision, companies are devoting more attention than
ever to the customers wants and needs. Likewise, marketing effort is more focused on
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
attracting, retaining and developing profitable relationships with employees, suppliers,
customers and others (Anderson and Vincze, 2000).
Marketing is the process of influencing voluntary exchange transaction in which
one party to be 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.
3. Finance. Deals with the momentary aspects, the efficient use and control of revenue and
expenditures, as well as capital asset and finds. An enterprise cannot grow and expand
unless financial resources are available or can be marshalled for use. However, proper
financing, according to Snodgrass and Wallace (1975) is essential to entrepreneurial
success, the right amount of funds must be expanded for inventories, adequate loans must
be arranged, sufficient fixed capital must be provided, credit must be extended wisely, and
the total physical volume of the enterprises must maintain at a level compatible with funds
available.
According to Ferrel and Hirt (2000), although management and marketing have to deal
with financial considerations, it is the primary responsibility of the owners to provide
financial resources for the operations of the business. Moreover the owners have the most
to lose if the business fails to make a profit. Finance refers to all activities concerned with
obtaining money and using it effectively.
4. Training. As mentioned by Dalisay (1975) is a process which involves many areas. It is
a system which merges from proper researches, interpretations and borrowing of all the
components that go into training programs such as the needs of the entrepreneur, trainees
and their perceptions, experiences, attitudes, knowledge and skills deemed relevant to
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
enrich their self-potentials and to improve their performance. Training is given to workers
to increase their specific job-related skills and to improve their productivity.
Marketing Mix Element
Rue and Holland (1986) states that marketing mix strategy is also familiar as the form P’s
of marketing (product, price, place, promotion) provides a good starting point for
consideration of the requirements of strategy implementation in the marketing function.
Marketing strategy is an overall program based upon selecting a particular target of the
market (Jurado and Llanes, 1982).
Marketing mix helps the company to determine what goods or products to offer, to
decide what distribution mix to use, to inform customers and to determine the overall level
of price. The main concept of marketing mix depends on a number of decisions with
regards to the four major variables of the 4 P’s.
A company’s marketing managers are responsible for planning and implementing
all the activities that result in the transfer of goods or services to its customers. These
activities culminate in the marketing plan-a detailed strategy for focusing marketing efforts
on consumer needs and wants. Therefore, marketing strategy begins when a company
identifies a consumer need and develops a product to meet it. In planning and implementing
strategies, marketing managers develop the four basic components (also called the 4 P’s)
of the marketing mix (Elbert and Greffin, 2000).
Marketing mix includes the basic tools used by marketing managers to sell goods and
services to target markets (Anderson and Vincze, 2000).
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Planning and executing the conception, pricing, promotion, and distribution of ideas,
goods, and services are essential marketing activities. These interrelated and
interdependent activities are performed to encourage exchange and build relationships. The
term marketing mix describes the results of management creative efforts to combine these
activities. Faced with a wide choice of product features, messages, prices, distribution
methods, and other marketing variables, the marketing managers must select and combine
ingredients to create a marketing mix that will achieved organizational objectives (
Zikmund and D’ Amico, 2002).
Product
The goods and service offered by an organization represents more than manufacturing or
production specifications. It is a bundle of benefits that is being delivered to meet the needs
of the organization customers. In the past, superior product design or performance was
thought to be sufficient to attract large numbers and suppliers are becoming involved in
product development and managements. They are brought into design process by the
manufacturers to maximize market acceptance and purchase. Product positioning strategies
have become more finely tuned to customer needs and perceived benefits, frequently from
a value-added perspective (Anderson and Vincze, 2000).
The term product refers to what the business or nonprofit organization offers to its
perspective customers or clients. The offering may be tangible foods, such as cars; a
services, such as an airline trips; or an intangible idea, such as the importance of parents
reading to their children.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Because customers often expect more from an organization than a simple, tangible
products, the task of marketing management is to provide complete offering – a “total
products”- that’s includes not only the basic goods or services but also the “extras “that go
with it ( Zikmund and D’Amico, 2002).
Marketing begins with a product- a good, a service or an idea designed to fill a consumer
need or want. Conceiving and developing new products is a constant challenge for
marketers, who must always consider the factor of change- changing of technology,
changing consumer wants and needs, and changing economic conditions. Marketing
consumer needs often means changing existing products to keep face with emerging
markets and competitors.
Product differentiation. Producers often promote particular features of products in
order to distinguish them on the market place. Product differentiation is the creation of the
feature or image that makes a product differ enough from existing products to attract
customers (Elbert and Greffin, 2000).
Product decisions first of all involve determining just what products the consumer
wants and will buy. However, planning the wanted product also leads to the development
of related strategies. Brand names, trademarks, warranty and guarantee aspects of the
product must also be determined. The physical design and the packaging of the product
similarly must be specified. The producer must also know the anticipated life cycle of the
product-How long it will have customer appeal? And must plan to develop new products
as the good or the production line becomes obsolete. Product planning calls for continues
review of a products performance and willingness reevaluate the initial marketing strategy
(Carson, 1985).
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Branding. Another factor that tries to relate the product image or intention (name, symbol,
design). Jurado and Llanes (1982) revealed that packaging is that part of product
development which is the design of a product’s container, whose purpose is to protect the
product to enhance the product’s value to the consumers and to stimulate sales. Benefits of
packaging to the seller include protection of the product, more efficient physical
distribution, lower total cost and relatively higher sales and profit. Benefits of packaging
to the consumers relate to helping keep the product clean and uncontaminated until it is
needed. Since packaging is a part of a company’s total marketing strategy, the marketing
objectives and design and the packaging policies must be consistent with the rest of the
total strategy.
Packaging. The packaging or external container that holds and describes the products,
influences consumers attitudes and their buying decision. It is estimated that consumers
eyes linger only 2.5 seconds on each products on an average shopping trip; therefore
products packaging should be designed to attract and hold consumers attention. The
attractive packaging captures attention and makes the products stand out. A package can
perform several function including protection, economy, convenience, and promotion
(Ferrel and Hirt, 2000).
Labeling. The presentation of the important information on the package is closely
associated with packaging. The content of labeling, often required by the law may include
ingredients or contents, nutrition facts (calories, fats, etc.), care instructions, suggestions,
for use (such as recipes), the manufacturer address and toll free number and other useful
information. In this information can have a strong impact on sales? The labels of many
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
products, particularly foods and drugs, must carry warnings, instruction, certifications, or
the manufacturer’s identifications.
Price or Pricing
The second critical marketing mix tool is the price. The concept of price is the amount paid
by the customers for a certain product or service. This can also be defined as a certain value
paid by the user of a certain product. Price can make many forms, but in the final analysis
it is what a buyer pays a seller for a product, service, license or future obligation. A product
price may be termed as list price, sales or markdown price. A price for service may be
referred as fee or tuition.
In marketing mix, price is the only element that produces revenue, all other marketing mix
represent cost. Price is also one of the most flexible elements of the marketing mix where
it can be changed quickly. Price affects most the demand, the company’s sales, the market
share and profit. The price indicates to companies what to produce, and who will be their
customers.
Pricing is the decision to produces a certain good and the price charged for it are
not independent variables. Pricing decision are always complex. Even the reasonable
expectation that the firm will always correct. Infact, to initially establish itself of a new
product line, a firm may actually accept a situation in which cost exceed price.Of course
this is usually a short term strategy. Generally, profit maximization remains the long term
goal (Carson, 1985).
Rue and Holland (1986) states that pricing must be considered in relation to costs,
consistency and potential inflation. Benefits of well-conceived pricing include increasing
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
sales to current customers, attracting new customers, maximizing short-run cash flow, and
maintaining an established position. Pricing product through the prevailing price is another
strategy in commonly practiced. The price for the service is reasonable and fair; moreover,
much competition was noted with the presence of the same services with in the vicinity
(Mahmood, 1996).
According to Zikmund and d’ Amico (2002), price is the money or something else of value
and a given in exchange for something. In other words, price is what is exchanged for a
product. The customer typically buys products with cash or credits, but the price maybe a
good or service that is traded. In not-for-profit situation, price may be expressed in terms
of volunteered time or efforts, votes, or donations.
Marketers must determine the best price for their products. To do so, they must ascertain a
products value, or what is worth to consumers. Once the value of the product is established,
the marketers know what price to charge. However, because consumer’s evaluations of a
product worth change over time, prices are subject to rapid change.
According to Anderson and Vincze (2000), price is basically the amount a customer is
willing to give up to obtain a desired good or service. Traditional pricing approaches tended
to be cost–based and adjusted according to the demand and price elasticity, indicators of
what the customer was willing to pay. Today, the focus is on pricing strategies such as
everyday low prices, price quality value, and value added. These are but a few of the “buzz
words” that characterize the current and evolving approach to pricing. Consumers and
organizational customers want real value for their money. However, value is determined
by the relationships between quality and price; the better the quality for the price charged,
the higher is the perceived value of purchase.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Place (Distribution)
Place is usually referred to as the channel or distribution. This has been very important in
business. It is very important to have the product at the right place. Having the product at
the right place is to go near the target customer. Bringing the product to the target customer
is to minimize cost in the business. The purpose is to make the product available and
accessible to target customers.
Traditional concept of physical distribution typically started at the plant and
involved bringing low cost solution to get them to customers.
The distribution system brings the product or service to the place where it can best fill
customer’s needs. Access to distribution can mean the difference between success and
failure for a new product (Rue and Holland, 1986).
Placing a product in the proper outlet-say, a retail store requires decisions about
several activities, all of which are concerned with getting the product from the producer to
the consumer.
According to Anderson and Vincze (2000), the place or distribution element of the
marketing mix refers to the channels and/or location that the sellers use to reach their
buyers. For example, direct sales from manufacturer to final customer represent the shortest
channel. Longer channel may involve manufacturer, one or more wholesalers or agents,
retailers, and final consumers.
Place or distribution, activities involve bridging the physical separation between buyers
and sellers to assure that products are available at the right place. Determining how goods
get to the customer, how quickly, and in what condition are decision that are made to place
products where and when buyers wants them. Transportation, storage, materials handling,
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
and the like are physical distribution activities. Selecting wholesalers and retailers or
choosing to be an e-commerce company operating exclusively on the internet is decision
about the structure and extents of distribution.
Promotion
Once the critical product and pricing decision have been made, the marketing managers
must determine the appropriate means in promoting the product. In general, a useful, well
designed and fairly priced products will go unsold unless people know about it.In a few
exceptions, words and mouth can sustain consumers demand, but a firm must usually
promote its goods extensively. A marketing manager must therefore plan a selling strategy
that involves the promotional tools of personal selling, advertising, publicity and sales
promotion (Carson, 1985).
According to Anderson and Vincze (2000), the promotional or communications mix
consists of all the tools that the tools that an organization uses to communicate with its
customers: advertising, personal selling, sales promotion, direct marketing, and
publicity/public relations. All organizations involved in communications strategies as they
sell to buyers at the next level. However, today, many of the traditional communication
methods are being challenged.
With the advents of sophisticated multimedia opportunities, marketers have expanded their
ability to communicate with their target customers. In addition to the traditional print and
electronic media (i.e. newspapers, magazines, direct mail, radio, television), todays
marketing messages can be transmitted by interactive television, home shopping networks,
direct mail video catalogues, computers services, and other electronics avenues. The
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
globalization of market challenges marketing managers to design and execute effective
communications programs for foreign audiences at homes and abroad.
The most highly visible components of marketing mix is no doubt promotion, which refers
to the techniques for communicating information about the product. The most important
promotional tools include advertising, personal selling, sales promotion and public relation
(Elbert and Greffin, 2000).
Advertising. Any form of paid non-personal communication used by identified sponsors to
persuade or inform potential buyers about a product.
Personal selling. Many products (for example, insurance, clothing and real estate) are best
promoted through personal selling, or person-to-person sales. Industrial goods receive the
bulk of personal selling. When companies buy from other companies, purchasing agents
and others who need technical and detailed information are usually referred to the selling
company’s sales representative.
Sales promotion. Relatively inexpensive items are often marketed through sales
promotions, which involve one time direct inducements to buyers. Premiums (usually free
gifts), coupons and package inserts are all sales promotions meant to tempt consumers to
buy products.
Public relations. Include all communication efforts directed at building good will. It seeks
to build favourable attitudes toward the organization and its products. The Ronald
McDonald house program is a well-known example of public relations.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Small Business and the Marketing Mix
The success of many businesses lies a skillful application of the marketing concepts
and careful consideration of each element in the marketing mix (Elbert and Griffin, 2000)
Small business products. Some new products and firms are doomed at the start because
few consumers want or need what they have to offer. Many fail to estimate realistic market
potential, and some offer new product before they have clear pictures of their target
segments.
Small business pricing. Haphazard pricing can even sink a firm with good product. Small
business pricing errors usually result from a failure to estimate operating expenses
accurately. Owners of failing businesses have often been heard to say “I didn’t realize how
much it costs to run the business” but when small businesses set prices by carefully
assessing costs, many earn satisfactory profits.
Small business distribution. Perhaps the most critical aspect of distribution for small
businesses is facility location, especially for new service business. The ability of many
small businesses to attract and retain customers depends partly on the choice of location.
In distribution as in other aspects of the marketing mix, however, smaller companies may
have advantages over larger competitors, even in highly complex industries.
Small business promotion. Successful small business plan for promotional expenses are
part of start-up costs. Some held down cost by using less expensive promotional methods.
Local newspapers for example are sources of publicity when they publish articles about
new or unique businesses. Other small businesses identify themselves and their products
with associated groups, organizations and events. Thus, a crafts gallery might join with a
local art league to organize public showings of their combined products.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Menu Defined
A detailed list of food items that may be ordered (as in a restaurant) or served. A menu
should reflect a particular operation mission and, therefore it will vary greatly from one
organization to the next. In the retail setting the menu is designed to attract customers and
generates sales, whereas on-sites operation plans menus to meet the needs and wants of a
known population. Regardless of the types if foodservices organizations for which menus
are being considered, careful planning, implementation, and evaluations are essentials to
the success of meeting customers’ needs and preferences within the budgetary constraints
of the organizations (Payne-Palacio and Theis, 2003).
Menu Planning
The primary goal of food service operations is to serve food that is pleasing to the
clientele. It is important to familiar with the target markets: who the consumers are, their
characteristics, and their food preferences.
Certain management’s factors must be considered. Allowing adequate time to complete
menu planning process is essential to smooth implementation of the menu. The menu
planner should aim for the best menu for the customers that optimize use of personnel and
equipment. Often a compromise must be between what food services would like to offer
and what is capable of producing and serving.
Types of Menus
Extents of selections. A selective menu includes two or more choices in some or all menu
categories. The exact number of options will vary with the different types of food services.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
The menu mix, or the selection of foods items in each food category, must be carefully
planned to meet the needs of the customers and to ensure even workloads and balanced
used of equipment’s.
Semi-selective menus. Allows one or more selections in some of the menus categories. For
examples, a long term care facility may offer two entrees and two desserts selections at
lunch and dinner, but only one choice in the vegetables and salad categories. Restaurants,
on the other hands, may offer choices of entrees accompanied by standards side dishes.
Nonselective menus. The menu that offers no choices of food items. Organizations using
the nonselective menu usually have a list of alternatives to offer in the events that a
customer does not want any of the menus items offered.
Single-use menu. The menu is planned for a certain day or events and is not repeated again
exactly the same form. This type of menu is often used for special functions, holidays, or
caterings events.
Cycle menu. A planned set of menus that rotate at definite intervals of a few days to several
weeks. The length of the cycle depends on the types of food service offered.
Static menu. The same menus are used each day. These types of menus are found in
restaurants and other foodservices where the clientele changes daily or where there are
enough items listed on the menu to offer sufficient variety.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
METHODOLOGY
Locale and Time of the Study
The study was conducted in Tuba, Benguet specifically it concentrate on the three main
roads namely; Marcos Highway, Naguilian Road and Kennon Road. The study was
conducted on December 2012 to January 2013.
Respondents of the Study
The respondents of the study were 30 owners and or the managers of the eatery business.
The researcher obtained the list of the business from the municipality of Tuba, Benguet.
Data Collection
The researcher distributed the questionnaire to the respondents. A follow–up interview was
undertaken to gather other necessary information needed in the study.
Data Gathered
The data gathered were profile of the business, their objectives, the different marketing
practices, the problems encountered by the entrepreneurs and the assessments on the
perceived best marketing practices of the respondents.
Data Analysis
The data gathered in this study were tabulated, analyzed and discussed. Descriptive
statistics using percentage and frequency were used primarily to describe the data.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
RESULTS AND DISCUSSION
Information About the Business
This section presents the brief profile or information about the eatery business studied. It
includes the number of years engaged in business, the types of business, the estimated
average operating capital, the source of capital, the staff employed which include the
number of staff and their position, and the role of the owner in the business.
Number of years engaged in business. About one- third (30%) of the respondents were
engaged in the business for 6-10 years , 20% for 11-15 years, 16.7% for 0-5 years, 13.3%
for 21-25 years and the sane 10% each for 16-20 years and 26-30years (Table 1). This
results shows that most of the respondents were engaged in the business for a numbers of
years which had given them relative experience and knowledge about their business
operation.
Types of business. Table 1 also shows that majority (63.3%) of the respondents were
classified as sole proprietorship which implied that these respondents choose to run their
business on their own. However, more than one third (36.7%) of the respondents have
decided to go on partnership.
Estimated average operating capital. Out of 30 respondents there are 36.7% whose average
operating capital is Php 1-15,000, 26.7% for Php 16,000-30,000, Php 16.7% for Php 46,000
-60,000, and the same 6.7% for Php 31,000-45,000, Php 76,000-90,000 and Php 61,000-
90,000. The data implies that the business owners are operating in small scale.
Source of capital. It can also be observed from Table 1 that majority of the respondents
provide their own capital, 43.3% borrowed their capital from different sources such as from
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
their family/ friends and relatives (61.5%), from banks with 7.7% and cooperatives with
30.8%. Among the borrowers, it implies that they prefer to source their capital from their
family/friend and relatives which accordingly offers lower interest than the formal sources
and sometimes no interest at all. Moreover, the borrowers from these formal sources yet
prefer to borrow from cooperatives as it entails lower interest than banks.
Table 1. Profile of the business
PARTICULARS
FREQUENCY
PERCENTAGE
Number of years in business
0-5
5
16.67
6-10
9
30.00
11-15
6
20.00
16-20
3
10.00
21-25
4
13.33
26-30
3
10.00
TOTAL
30
100.00
Types of business
Sole proprietorships
19
63.33
Partnerships
11
36.67
TOTAL
30
100.00
Table 1. Continued….
PARTICULARS
FREQUENCY
PERCENTAGE
Estimated operating
capital (Php)
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
1-15,000
11
36.67
16,000-30,000
8
26.67
31,000-45,000
2
6.67
46,000-60,000
5
16.67
61,000-75,000
2
6.67
76,000-90,000
2
6.67
TOTAL
30
100.00
Source of capital
Own capital
17
56.67
Borrowed capital
13
43.33
TOTAL
30
100.00
If borrowed where?
Family/friend and relatives
8
61.50
Banks
1
7.67
Cooperatives
4
30.80
TOTAL
13
100.00
Number of staff employed. Table 2 presents the number of staff employed, 6.67% of the
respondents do not employ any staff while most (93.3%) of them employ a number of staff.
Staff employed. There are 50% of the respondents who employed service crew,
cashier (36.7%), dishwasher (33.3%) and lastly cashier (26.7%).
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Role of the owner. Table 2 further shows that 33.3% of the respondent’s role is
manager, purchaser, and cashier, while 26.7% act as manager and cashier, 23.3% serves as
manager, cook and cashiers. Moreover, 16.7% respondents say that they act as a manager.
This implies that the owners are performing others tasks or job in the business aside from
being the boss.
Table 2. Profile of the business
PARTICULARS
FREQUENCY
PERCENTAGE
Number of staff employed
1
3
10.00
2
5
16.67
3
4
13.33
4
4
13.33
5
1
3.33
6
6
20.00
7
1
3.33
8
2
6.67
Table 2. Continued….
PARTICULARS
FREQUENCY
PERCENTAGE
9
2
6.67
No staff
2
6.67
TOTAL
30
100.00
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Staff employed*
Cook
11
36.67
Cashier
8
26.67
Service crew
15
50.00
Dishwasher
10
33.33
Role of the owners
Manager
5
16.7
Manager,purchaser, cashier,
10
33.3
Manager ,cook, cashier
7
23.3
Manager and cashier
8
26.7
TOTAL
30
100.00
*Multiple responses
Objectives of the Business
This presents the objectives of the business in terms of product, price, place and
promotion.
Product. According to Zikmund and D’Amico (2002), marketing begins with a product-a
good, a service or an idea designed to fill a consumer need or want. Conceiving
and developing new products is a constant challenge for marketers, who must always
consider the factor of change- changing of technology, changing consumer wants and
needs, and changing economic conditions. Marketing consumer needs often means
changing existing products to keep face with emerging markets and competitors.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 3 shows that most (83.3%) of the respondent’s objectives are to offer safe and clean
food, 73.3% is to offer different menu items so that customers have a choice, 63.3 % is to
offer good performance of employees and 56.7% is to have business identity. Furthermore
there are 46.67% of the respondent’s objectives are to ensure satisfaction and build a
repeat-customers base, the same 40% to disposed the food in a day and to develop a strong
and attractive menu with competitive price, and 33.33% is to sell delicious and remarkable
food.
Price. Pricing is the decision to produces a certain good and the price charged for it are not
independent variables. Pricing decision are always complex. Even the reasonable
expectation that the firm will always correct. Infact, to initially establish itself of a new
product line, a firm may actually accept a situation in which cost exceed price. Of course
this is usually a short term strategy. Generally, profit maximization remains the long term
goal (Carson, 1985).
Almost all (93.33%) of the respondent’s objectives are to maximize profit. There are about
56.67% of the respondents objectives is to increase market share, while 46.7% is to have
greater return on investment, 43.33% is to offer affordable product, and 33.33% is to meet
competition. The data indicate that aside from maximizing the profit, the business owners
have other reasons in engaging to business.
Place. Ninety percent of the respondent’s objectives in terms of place are to have a location
that is convenient and suitable for customers, 76.67% is to have a location that is safe and
clean, 73.33% is to have a location that is affordable yet accessible to the customers and
33.33% is to have a delightful ambiance. This result implies that the business owners
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
recognize the importance of having a location that is convenient and suitable to customers
in making sales.
Promotion. Most (80%) of the respondent’s objectives are to encourage customers to keep
patronizing the menu or enterprise. Also there are 60% of the respondents objectives are to
make people aware of the menu or enterprise, feel positive about it and remember it.
Table 3. Objectives of the business
PARTICULAR
FREQUENCY
PERCENTAGE
Product
To offer different menu items
so that customers have a choice
22
73.3
To offer safe and clean food
25
83.3
To disposed the food in a day
12
40.00
To ensure satisfaction and build
a repeat-customer base
14
46.67
To develop a strong and attractive
menu with competitive prices
12
40.00
To sell delicious and remarkable
Food
10
33.33
To have a business identity
17
56.67
Table 3. Continued…..
PARTICULARS
FREQUENCY
PERCENTAGE
To ensure that all customers are treated with the
respect they deserve
8
26.67
To offer good performance of employees
( friendly, happy host)
19
63.33
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
To offer other services like catering
5
16.67
Price
To maximize profit
28
93.33
To satisfy customers
9
30.00
To increase market share
17
56.67
To have greater return on investment
14
46.67
To meet competition ( pricing good or
service in order to adjust with competitors)
10
33.33
To offer affordable product
13
43.33
Place
To have a location that is safe and clean
26
76.67
To have a location that is affordable yet accessible
to customers
22
73.33
To have a location that is convenient and suitable for
customers
27
90.00
To have a delightful ambiance ( smell, sight
10
33.3
ex. Color, lighting, sounds)
Table 2. Continued…..
PARTICULARS
FREQUENCY
PERCENTAGE
Promotion
To make people aware of the menu/enterprise, feel
18
60.00
positive about it and remember it
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
To encourage customers to keep patronizing the
24
80.00
items/ enterprise
*Multiple responses
Marketing Practices
This section presents brief information on marketing practice of the respondents in terms
of product, price, place and promotion. The result is measured into scale of five as always,
four as often, three as sometimes, two as rarely and one as never.
Product Practices
This include the product offering, practices in offering the product, food
preparation, amenities and facilities and other services offered.
Productoffering. The finding shows that, the respondents are always offering “adobong
baboy”, “fried chicken”, “adobong manok”, “pritong tilapia”and“bangus”. In addition
there are also respondents who often offer “fried chicken”, “pinikpikan”, “sinigang na
bangus” and “pinakbet”. Furthermore, there are some respondents who claimed that their
product offerings are within the choice of the customers and usually the menu includes
“tinolang manok”, “nilagang baka”, “giniling”, “menudo”, “bulalo”, “inihaw na pork
belly”, “inihaw na bangus”, “paksiw na tilapia”, “grilled hito”, “egado”, and “bicol
express”.
Practices in offering the product. Table 4 also shows that the respondents are always
offering safe and clean food (meeting sanitary requirement as prescribed by DOH, and all
the workers have regular medical examination), serving menu items that are newly
prepared and cooked, offering free soup, offering an adequate serving, and servings
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
healthy and nutritious food. Also, the respondents are often in offering unlimited rice, and
budget meal. This implies that the first thing the respondents consider in offering product
is making sure that the food to be served is safe and clean. Furthermore, the results also
emphasized that the owners has several practices in offering product in order for them to
attract customers.
Food preparation. The practice of the respondents in food preparation is that the server
always has knowledge on the menu, always serving food that is well prepared and always
offering fast services. This shows that owners trained their staff for the familiarity on the
menu they served.
Facilities and amenities. Table 4 also shows that the respondents are having
alwayshave available amenities, adequate lighting and attractive decoration. However the
facilities and amenities often have proper ventilation and parking space, and lastly it is
rarely that business have available facilities like comfort room. This implies that there are
more eatery business that have facilities and amenities that contributes to attracting more
customers.
Other services offered. Table 4 implies that the respondents often offertake-out. The
respondents are also rarely in offering other services like catering and free food for bus
drivers. These results revealed the limited knowledge of the respondents towards offering
variety of services to their customers like catering.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 4. Product practices
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Product offerings
“Adobong baboy”
4.70
Always
“Fried chicken”
4.30
Often
“Pinikpikan”
3.53
Often
“Pinapaitan”
3.06
Sometimes
“Pritong tilapia at bangus”
4.50
Always
“Sinigang na bangus”
3.93
Often
“Pinakbet”
3.53
Often
Practices in offering the products
Offer safe and clean food (meeting
sanitary requirement and prescribed by
DOH, and all the workers have regular
Always
medical examination)
5.00
Serve menu items that are newly prepared and
cooked
4.80
Always
Offer unlimited rice
3.63
Often
Offer free soup
5.00
Always
Offer an adequate serving
4.93
Always
Offer budget meal
3.80
Often
Table 4. Continued….
PARTICULARS
WEIGHTED DESCRIPTION
MEAN
Serve healthy and nutritious food.
4.83
Always
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Server had knowledge on the menu
4.8
Always
Offer fast service
4.3
Always
The food to be served is well-prepared
4.5
Always
Facilities and amenities
Available facilities (comfort room)
2.4
Rarely
Available amenities (Television, air condition)
4.3
Always
The food to be served is well-prepared
4.5
Always
Facilities and amenities
Proper ventilation
3.9
Often
Proper ventilation
3.9
Often
Adequate lighting
4.7
Always
Attractive decoration
4.5
Always
Adequate parking space
3.8
Often
Other services
Catering
1.8
Rarely
Take-out
3.8
Often
Free food for bus drivers
2
Rarely
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 5. Pricing practice
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Basis of product pricing
Competition- based pricing
3.76
Often
Cost-based pricing
4
Often
Based on target return on investment
3.16
Sometimes
Discount
2.13
Sometimes
Pricing Practices
The respondents often price their product using competition-based pricing and cost-based
pricing. But sometimes the product is price based on the respondent’s target return on
investment and based on discounting. These results revealed that the respondents do not
concentrate only in one pricing strategy. However, the common pricing strategy used is the
competition-based pricing and cost-based pricing.
Place Practices
This section presents brief information about the practices of the respondents in terms of
target market, how they reach their customers, why they choose the location and the
description of the business.
Target market. The finding shows that the respondent’s target markets ofteninclude the
passengers and drivers, but sometimes their customers are the resident in the place and
anyone (students and employees). So, this result implies that the business do not just focus
on one target market, but anyone who wants to eat in the place.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Reaching and maintaining customers. The Table 6 also shows how the respondents reach
their customers. The result indicates that it is always through continuous improvement of
the menu and having good relationships to the customers. It shows also that the respondents
rarely enter into internal arrangement with bus, jeep, and van drivers and/or operators and
in practicing free delivery. This implies that in reachingtheir customers, continuous
improvement of the menu and having good relationships are the common practices they
used in order for them to attract and satisfy the customers.
Choosing the location. Moreover, the respondents choose the place as the location due to
its accessibility and convenience and cleanliness of the surrounding. In addition, the data
also imply that the business owners often have more customers. This implies that the first
thing they consider in choosing the place as the location is that it is convenient to the
customers and cleanliness of the surroundings, as the location is one of the preference of
the customers in choosing location where they would eat and consume time.
Description of the business. The findings further show that the business is always
presentable (attractive decoration, adequate lighting, clean), have delightful ambiance
(smell-aromatic, sounds-music). Moreover, they are often in having available facilities like
comfort roomand large space that can occupy all the customers.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 6. Place practices
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Target market
Passengers and drivers
4.27
Often
Residents
3.47
Sometimes
Anyone (students, employee, etc.)
2.46
Sometimes
Reaching the customers
Free delivery
1.9
Rarely
Internal arrangement with bus, jeep, and van
drivers and/or operators
2.03
Rarely
Continuous improvement of the menu
4.63
Always
Good customer relationships
4.4
Always
Choosing the location
Accessible and convenient
4.5
Always
More customers
3.93
Often
Cleanliness of the surroundings
4.3
Always
Description of the business
Large space can occupy all the customers
4.13
Often
Presentable (Attractive decoration,
Always
adequate lightning, and cleanliness)
4.3
Delightful ambiance (smell-aromatic scent,
Often
sounds- music)
4.2
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Promotion Practices
This section presents the information on the practices of the respondents in promoting their
products in terms of advertising, sales promotion and personal selling.
Advertising. The businesses are sometimes promoting their product using tarpaulin.
Furthermore, they never use newspapers and flyers in promoting their product in terms of
advertising. This result implies that the respondents are not promoting their product using
advertisement, but then there are some but not always which could be due to the high cost
of these promotional measures.
Sales promotion. The business owners always use plain product display in promoting their
product in terms of sales promotion. Furthermore, they never use coupons in attracting
customers.
Personal selling. The finding also shows that an entrepreneur’s one way of promoting their
product is by always inviting their customers directly. This result implies that they are not
using other promotional materials due to lack of capitals and lack of knowledge on these
promotional strategies.
Table 5. Promotion Practices
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Advertising
Newspapers
1
Never
Flyers
1
Never
Tarpaulin
3.3
Sometimes
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 5. Continued….
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Posters
1.73
Never
Sales promotion
Plain product display
5
Always
Use coupons
1
Never
Personal selling
Inviting customers directly
5
Always
LEGEND: 1-1.8 – Never 1.9-2.6- Rarely 2.7-3.4- Sometimes 3.5-4.2- Often
3-5- Always
Marketing Problems
Table 8 presents the problems of the eatery business in terms of product, price,
place and promotion.
Product. Table 8 shows the marketing problems of the respondents in offering their
product, and services.
As the results shown in Table 8, the problems of the respondents in terms of product
offering is that they are always offering the same menu (70%), is offering limited menu
(56.67%), is lack of product quality (36.67%), and the food to be served is not well-
prepared (10%). There were 50% of the respondents whosay that there problems in offering
service is inadequate facilities, no proper ventilation (33.33%). In addition, 13.33% is due
toinadequate lighting and 6.67% is due tounattractive decoration.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Pricing. The Table shows that price being not affordable to some customers (73.33%) is
the common problems of the eatery business, while 50% is the price competition. The
respondent offering is not affordable to some customers but then it is also affordable to
some.
Place. Table 8 also shows that 80% of the respondent’s problems in terms of place is less
customers, so this implies that some of the eatery business in Tuba has fewer customers,
especially to the eatery that is newly opened. Furthermore, price competition and
unattractive decoration have 43.33% and 3.3% respectively.
Promotion. This shows that lack of capital (76.67%) is the common problems of the
respondents for not promoting their product, while 56.67 is due to high cost of promotion,
33.33% is lack of knowledge about the promotional strategies and lastly 30% is
inaccessibility of the promotional media.
Table 8. Marketing problems
PARTICULARS
FREQUENCY
PERCENTAGE
Problems in offering product
to the customers
Limited menu items
17
56.67
Lack of product quality
11
36.67
Food to be served is not well prepared
3
10.00
Always the same menu
21
70.00
Problems in offering services to customers
Inadequate facilities ( parking space)
15
50.00
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 8. Continued….
PARTICULARS
FREQUENCY
PERCENTAGE
No proper ventilation
10
33.33
Inadequate lighting
4
13.33
Unattractive decoration
2
6.67
Problems on pricing
Price is not affordable to
some customers
22
73.33
Price competition
15
50.00
Problems on place
Price competition
13
43.33
Less customers
24
80.00
Unattractive surroundings
1
3.33
Problems on promotion
High cost of promotion
17
56.66
Lack of capital
23
76.67
Lack of knowledge about the promotional
strategies
10
33.33
Inaccessibility of the promotional media
9
30.00
*Multiple responses
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Assessment on the Perceived Best Marketing Practices
of the Respondents
Most of the respondents agree on the variables used in assessing the best marketing
practices. Nevertheless, the respondents are undecided in relation to whether the cost of
promotion is within the allowable budget and whether promotions increase the number of
customers.
As the results shown in the past discussion, offering safe and clean food and
offering free soup are the respondents marketing practices in terms of product as it attained
their objectives of attracting more customers and since they do not encounter any problems
with regard to this practice.
Cost-based pricing is their marketing practices in terms of price. This is shown in
the results, as there are more owners who prefer to price their product using cost-based
than based on competition.
As to place, the business is accessible and convenient to customers and the
surrounding is clean are the respondents practices as it also attained their business
objectives.
As to promotion, only plain product display and inviting customers directly are the
practices of the respondents due to lack of capital and lack of knowledge about promotional
strategies which as a results constraint them to promote their product using this promotional
tools. However, the use of plain product display and inviting customers directly as their
promotional tool increases the number of product sold.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Table 9.Assessment on the perceived best marketing practices
PARTICULARS
WEIGHTED
DESCRIPTION
MEAN
Product
The consumers always patronize the product.
3.67
Agree
Price
The price of the product maximizes the profit.
3.97
Agree
Place
The eatery is accessible and convenient to the
customers
3.97
Agree
Promotion
There is increase in the number of customers
3.4
Undecided
There is increase in the number of product sold.
3.87
Agree
The cost of promotion is within the allowable
budget
3.13
Undecided
LEGEND: 1-1.8- Strongly disagree
1.9-2.6- Disagree
2.7-3.4- Undecided
3.5-4.2- Agree
4.3-5- Strongly agree
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
SUMMARY, CONCLUSION AND RECOMMENDATION
Summary
The study was conducted to determine the objectives, marketing practices, and
marketing problems of the eatery business in Tuba, Benguet. It also aimed to assess the
perceived best marketing practices of the business.
A survey questionnaire was used to gather necessary data from the owners of eatery
business as the respondents. Personal interview was also done to supplement the data
gathered.
The results revealed that there are more sole proprietorship forms of business than
partnership.
Majority of the respondent’s source of capital is from their own pockets, but there are some
owners who sourced their capital from external sources and it was observed that these
owners sourced their capital from their family, friends and relatives which accordingly
offers lower interest than the formal sources and sometimes no interest at all. Moreover,
the borrowers from the formal sources like banks and the cooperatives yet prefer to borrow
from cooperatives as it entails lower interest than banks.
Most (83.3%) of the respondent’s objective in terms of product is offering safe and
clean food, while in pricing almost all (93.3%) the respondent’s objective is to maximize
their profit. In addition, in terms of place most (90%) of the respondent’s objective is to
have a location that is safe and clean and lastly most (80%) of the respondent’s objective
in terms of promotion is to encourage the customers to keep patronizing the menu items or
enterprise.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
The marketing practices are measured into scale of five; (5)-always, (4)-often, (3)-
sometimes, (2)-rarely and (1)-never. Some of the respondents always practice some of the
given product offerings, majority of them have their own facilities and amenities.
Furthermore, they are rarely in offering other services like catering, take-out and free food
for bus, jeep and van drivers and/or operators.
In terms of pricing practices of the owners, they often adopt competition-based pricing and
cost–based pricing, but sometimes they are pricing their product based on their target rate
of return on investment and giving discounts to the customers.
In terms of place, the target market of the respondents are often the passengers and drivers,
but sometimes their customers include the resident and anyone, on the other hand, the
respondents rarely make internal arrangement with the bus, jeep, and van drivers and/or
operators and rarely practice free delivery.
In terms of promotion, they never promote their product using flyers, coupon,
posters and newspapers, but sometimes they are using tarpaulin. Moreover, they are always
promoting their product using plain product display and inviting customers directly.
The marketing problems in terms of product offering are always the offering of the
same menu and limited menu items. In addition in terms of offering the services the
problems encountered involved the inadequacy of parking space.
The pricing problems include the price being not affordable to some customers and
price competition.
Lack of capital is their problems in terms of promotion. Moreover, the high cost of
promotion, lack of knowledge about the promotional strategies and inaccessibility of
promotional media are also encountered.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
Majority of the respondents agree to the assessment on the perceived best marketing
strategy in terms of product, price, place, and promotion. In terms of promotion the
respondents agreed that the promotional tools used increased the number of product sold
however they are undecided whether the cost of promotion is within their allowable budget.
Conclusions
Based on the findings, the following conclusions were drawn;
1. The respondent’s objective in terms of product is offering safe and clean food,
while in pricing is to maximize their profit. In addition, in terms of place m is to have a
location that is safe and clean and lastly in terms of promotion is to encourage the customers
to keep patronizing the items or enterprise;
2. Some of the respondents always practice some of the given product offerings,
majority of them have their own facilities and amenities. Furthermore, they are rarely in
offering other services like catering, take-out and free food for bus, jeep and van drivers
and/or operators;
3. The respondents are often adopt competition-based pricing and cost–based pricing,
but sometimes they are pricing their product based on their target rate of return on
investment and giving discounts to the customers;
4. The respondents target market are often the passengers and drivers, but sometimes
their customers include the residents and anyone, on the other hand, the respondents rarely
make internal arrangement with the bus, jeep, and van drivers and/or operators and rarely
practice free delivery;
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
5. The respondents never promote their product using flyers, coupon, posters and
newspapers, but sometimes they are using tarpaulin. Moreover, they are always promoting
their product using plain product display and inviting customers directly;
6. The respondents marketing problems are always offering the same menu and
limited menu items. Furthermore, almost all of the eatery businesses are not offering other
services like catering and free delivery;
7. Some of the area where the businesses are located has fewer customers; and,
8. Some eatery owners are not using any promotional tool in promoting their product
which could be due to lack of capital to promote their product. And moreover, due to lack
of information on promotional strategies.
Recommendations
1. The owners should get more information about cooking recipes to come up with
new dishes;
2. They should come-up with a new marketing strategy such as offering unlimited rice
and giving discount in order for them to attract more customers;
3. The managers should look for more strategic places since location is very important
factors in making sales;
4. The manager must therefore plan a selling strategy that involves the promotional
tools of personal selling, advertising, publicity and sales promotion;
5. The business owners could look for sources of capital offering low interest in order
to have available funds to finance the operation of their business; and,
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
6. The business owners should seek assistance from the different government agencies
like the Department of Trade and Industry (DTI), and Department of Tourism (DOT)
regarding support or assistance offered to micro-enterprise. However, these business
owners should comply with the basic and legal requirements of these agencies in order to
avail of whatever services they may opt to regarding improving their business operations.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013
LITERATURE CITED
ANDERSON, C. AND VINCZE, J. 2000. Strategic Marketing Management.USA.Pp.11,
62, 4, 11-13.
CARSON R. B. 1985. Enterprise An Introduction to Business. USA. Pp.245-246.
DALISAY A. 1975. Agriculture and Rural Development in the Philippines. Manila: UP
Publication. P.5.
ELBERT, R. AND GREFFIN, R. 2000. Business Essential., New Jersey: Prentice Hall,
Pp. 247-263.
FERREL, Q.C AND HIRT, G. 2000. Business a Changing World, Third edition. USA. Pp.
4-5,331.
JURADO, T.M, AND LLANES, V.A. 1982. Marketing Principles and Practice. Pp.112-
305.
LIM, M.T. 1985. Industry Analysis for Business Policy and Planning. Manila: Sinangtala
Publishers, Inc. Pp.605-606.
MAHMOOD, Q.1996. Advertising Strategies of Two Automobile Manufacturing
Companies in the Philippines. Unpublished Thesis. Baguio College Foundation. Gov. Pack
Road, Baguio City, CHED- CAR. Pp.18-19.
PAYNE- PALACIO, J AND THEIS, M. 2003. West and Woods Introduction to Foods
Services.Prentice Hall. Pp. 86, 87, 97.
RUE, L.W. AND HOLLAND, P.G. 1986. Strategies Management Concepts and
Experiences. Pp. 553-554
SNODGRASS, M.M AND WALLACE, L.T. 1975. Agriculture, Economics and Resource
Management, New Jersey: Prentice Hall, Pp.324-325.
ZIKMUND, W. AND D’ AMICO, M. 2002. Effective Marketing, USA.Pp.9-13.
Marketing Practices of Eateries in Tuba, Benguet
VIRGO, IRENE B. APRIL 2013