54P Marketing Stethoscope and Diagnostic Toolkit: Paradigm Shift from Traditional 4Ps of Marketing

www.josephdeungria.com
Be a
Marketing Doctor
in 77 slides…
Prof. Bong De Ungria, MBA, CDM
Ateneo Graduate School of Business
Use the 21st Century Marketing Stethoscope
And Diagnostic Tool Kit
To Get to the Heart of Marketing Problems

Paradigm Shift
from the 4Ps
of Marketing
to 54Ps
Prof. Bong De Ungria, MBA, CDM
Ateneo Graduate School of Business
A 21st Century Marketing Stethoscope
And Diagnostic Tool Kit
To Get to the Heart of Marketing Problems

1. Form groups of 3.
2. Agree on your wackiest or most serious
group photo pose.
3. Have your picture taken via iPAD.
4. Huddle as a group and list all the marketing-
related words that start with a P.
5. Group that can name all 54 Ps of the lecture
wins a PRIZE
4 Marketing Preliminaries

4P’s of Marketing? Surely you have heard it.
Before, it was…

Remember:
Marketing Mix 4 P’s mean much more!

Somebody thought of adding 3
new Ps to make it 7Ps mix

Others Created Better Ways to
Illustrate the 7P Model

And still more ways…
Like the 7 dwarfs
to remember the 7Ps?

Same 7Ps:
Online
Marketing
http://marketingmix.co.uk/

Same 7Ps:
Service
Marketing
http://www.learnmarketing.net/
servicemarketingmix.htm

Because services are VIP-int:
1. Variable- 4Ws
2. Inseparable- produced & consumed
simultaneously
3. Perishable- cant be stored; more to cope
with demand fluctuations
4. Intangible- cant sense before
Why are the people, process and
physical evidence important for
services?

21st Century realities demand a
the 4Ps and 7Ps
And Work with the 54Ps of Marketing!
But!

In the same universal way
that doctors use stethoscopes,
and economists use GNP
to give a quick ,valid diagnosis
This 54P Marketing Stethoscope and Diagnostic Toolkit
Systematically Diagnoses most Marketing Problems!
vCoach Bong De
Ungria, AGSB
Professor’s Note:
Why This?

Why are diagnostic tools
like blood tests and x-rays
widely used?
Because simple diagnostics are:
Non-invasive, non-destructive, painless
Quick
Economical Indicators
But they are not as complete
as full blood chem or CT scan
or brain surgery

Now, let’s start with 54Ps

1st P: Potential Market =
Everyone interested in your
product or service
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders

1st P: Potential Market =
Everyone includes competitors
who can be future customers
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
Competitors include
current & future,
direct & indirect
(Example: movies
Competing with
Ballgames
For patrons)

2nd P: Probable or Available Market =
Everyone with interest, access,
income & qualification
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE or AVAILABLE Market

Everyone with interest, access,
income & qualification
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
Example:
For “premium” cervical cancer vaccines
Only females 10 years old & above(qualify)
Belonging to Class AB (income)
in Metro Manila (access)
Who believe in preventive (interest)

Probable < Potential
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders

What is the market size?
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
IS THE
MARKET
BIG ENOUGH
TO MATTER
And
SMALL ENOUGH
TO HANDLE?

3rd P : Primary Target Market =
Focus limited resources on PTM
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
PTM is the
Segment of
The Probable
Market that is
Targetted

4th P : Penetrated Market =
Those who actually buy
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market

3rd and 4th P :
Greater overlap is ideal!
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
OVERLAP =
Targetted customers
who actually buy.
Indicator of marketing
efficiency

5th P : Positioning Part 1=
What company communicates
to PTM (Brand Identity)
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
Positioning
BRAND
IDENTTY
COMPANY

How customer remembers
communication (Brand Image)
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
PositioningPositioning
COMPANY
BRAND
IMAGE

Ideal: Maximum overlap of
image & identity
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
COMPANY
BRAND
IMAGEBRAND
IDENTTY
BRAND
IMAGE BRAND
IDENTTY

5th P: Identity vs. Image Example
Sun Cellular Identity: Unlimited
Sun Customers Image: 2nd phone
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
COMPANY
BRAND
IMAGEBRAND
IDENTTY
BRAND
IMAGE BRAND
IDENTTY

6th to 9th: 4 Ps of Marketing Mix
Support positioning with 4Ps
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O

10th P: Packaging
Can provide competitive advantage
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging

10th P: Packaging
May improve/ integrate delivery of 4Ps
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging

11th P: Participation
Engaged customers are co-
creators of positioning & 4Ps
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging
Participation

11th P: Participation
Greater participation= stronger
customer loyalty
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging
Participation

11th P: Outstanding Participation Models
Text votes in American Idol,
Talentadong Pinoy,Ms Universe
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging
Participation

11th P: Outstanding Participation Models
Customers uploading content in
Youtube & Facebook
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging
Participation

11th P: Poor Participation Model if
Facebook & Youtube dictated
users’ content?
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging

11th P: Warning: BALANCE Participation!
Cannot hand-over 100% control
to the market
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging
Participation

1. Miss Philippines always wins Ms.
Universe
2. X videos can overwhelm youtube
3. Bullying on facebook
4. Twitter with 300 character messages
5. Scheming one wins Survivor
100% Participation can
destroy products!

12th 13th and 14thPs: Extended Marketing Mix
Foundations supporting 4Ps are
people, process, physical evidence
POTENTIAL or
TOTAL
MARKET
Of Customers
& Competitors
& Stakeholders
PROBABLE
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging
People, Process, Physical Evidence
Participation

15th and16th Ps: Marketing Cannot Operate
Alone!
HR (People), Operations
(Production) & Finance (Payments)
1POTENTIAL MARKET
2PROBABLE Market
3Primary
Target Market
4Penetrated
Market
5PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
11Packaging
12People, 13Process, 14Physical Evidence
10Participation
People, 15Production, 16Payments

17th P: PURPOSE
Employees need to be driven and guided
by company’s vision/ mission
1POTENTIAL MARKET
2PROBABLE Market
3Primary
Target Market
4Penetrated
Market
5PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
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M
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11Packaging
10Participation
17 P U R P O S E

18th P: Passion vs. Passivity
People (customers & employees)
need to be engaged and passionate
1POTENTIAL MARKET
2PROBABLE Market
3Primary
Target Market
4Penetrated
Market
5PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
11Packaging
10Participation
18
P
A
S
S
I
O
N
17 P U R P O S E

19th, 20th P:
Persistent Profits guarantee
long term, sustained growth
1POTENTIAL MARKET
2PROBABLE Market
3Primary
Target Market
4Penetrated
Market
5PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
11Packaging
10Participation
18
P
A
S
S
I
O
N
17 P U R P O S E
19Persistent
20Profits

What’s popularly referred
to as triple bottom line?
Profit (bottom vs topline of revenue)
People
Planet or public (even non-interested)

21st P: Triple Bottom Line
Traditional and commonly first
bottom line are profits
1POTENTIAL MARKET
2PROBABLE Market
3Primary
Target Market
4Penetrated
Market
5PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
11Packaging
10Participation
18
P
A
S
S
I
O
N
17 P U R P O S E
19Persistent
20Profits

More pro-active companies are prioritizing
human capital as 2nd bottom line
1POTENTIAL MARKET
2PROBABLE Market
3Primary
Target Market
4Penetrated
Market
5PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
11Packaging
10Participation
18
P
A
S
S
I
O
N
17 P U R P O S E
19Persistent
20Profits

3rd & most neglected bottom line is Planet
or Public (bigger than Potential Market)
1POTENTIAL MARKET
2PROBABLE Market
3Primary
Target Market
4Penetrated
Market
5PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
11Packaging
10Participation
18
P
A
S
S
I
O
N
17 P U R P O S E
19Persistent
20Profits
21 Planet or Public

What Truly Determines
Marketing Success?

The greatest P!
YOU are what everyone perceives!

Perception!
How our mind sees, and
remembers the world
mind sees remembers

22nd P: Perception
Perception is the Position in the Mind of
the Primary Target Market
1POTENTIAL MARKET
2PROBABLE Market
3Primary
Target Market
4Penetrated
Market
5PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
11Packaging
10Participation
18
P
A
S
S
I
O
N
17 P U R P O S E
19Persistent
20Profits
21 Planet or Public

Stethoscope: First 22Ps
represent 1st dimension only

Stethoscope is the 1st
dimension, 1st diagnostic tool.
There are others…

There are 7 tools & 54Ps
in marketing diagnostic toolkit

When does marketing happen vs. sales?
24 Pre-sale
25 Partnership during sale
26 Post-sale
What time frame must be considered for plans?
27. Past
28. Present
29. Projected or Proactive Future
Taking Pulse: 2nd Tool
23Period (Timing is key!)

Help customer position in his mind
31. Points of Parity
32. Points of Difference
How?
33. Paint/ Project
34. Picture
Thermometer: 3rd Tool
30 Point of Comparison

Consider the 3 Strategic Cs
of Marketing
Imagine driving a car
using only the front view mirror
no side mirror
no back view mirror
how fast and how safe can you go?
Eye Test: 4thTool
35 Perspective of 3Cs

Heart is a 3 cornered shape
For 3 Strategic Cs

CUSTOMER
First side is Customer

COMPANY
CUSTOMER
2nd side is Company who creates,
communicates & delivers value

COMPANY
CUSTOMER
COMPETITION
3rd side is Competition

COMPANY
CUSTOMER
NEEDS,
WANTS,
DEMANDS
COMPETITION
For customers, we meet demands

3 Strategic C’s:
Company, Customer, Competition
PROBABLE or PRE-QUALFIED Market
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
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E
P
L
A
C
E
P
R
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M
O
Packaging
Participation
People, Production, Payments
POTENTIAL Market
Persistent
Profits
COMPANY
CUSTOMERS
COMPETITION
P
A
S
I
O
N
P U R P O S E

Company tries to reach the
right customers
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging
Participation
POTENTIAL Market
Persistent
Profits
COMPANY
CUSTOMERS
COMPETITION
P
A
S
I
O
N
P U R P O S E

Competition can block company
communication & profits.
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging
Participation
POTENTIAL Market
Persistent
Profits
COMPANY
CUSTOMERS
COMPETITION
P
A
S
I
O
N
P U R P O S E

The Company must listen to Its
Customers to Beat Competition
Primary
Target Market
Penetrated
Market
PositioningP
R
O
D
U
C
T
P
R
I
C
E
P
L
A
C
E
P
R
O
M
O
Packaging
Participation
POTENTIAL Market
Persistent
Profits
COMPANY
CUSTOMERS
COMPETITION
P
A
S
I
O
N
P U R P O S E

Need to respond to marketing
challenges in order to:
37. Protect customers vs “bad” brands
38. Prevent loss of sales, share or profit
39. Prolong PLC (product life cycle)
40. Preserve Preferred Brand Status
Ask Questions: 5th Tool
36 Probe Why? ? ?

Inside the Philippine psyche-
42. Poor
43. Patient
44. Perserves/ Resilient
45. Puso (Ch 7)
46. Pamilya (Ch 2)
47. Pananampalataya/ Faith
6th Tool:
41 Philippine X-Ray: See what’s inside?

After going through the 1st 47Ps, then:
49. Plan the next action
50. Promise by the brand
51. Personal promise by the one talking to the customer
52. Professional promise of the company/ brand
53. Performance vs customer expectation
54. Perceived net value (benefit vs. cost)
7th Tool:
48 Prescription: What’s the outcome of
the doctor visit?

The 54P marketing stethoscope and diagnostic toolkit is
just 1 approach to marketing analysis.
Its simplistic structure makes it easy to master and
apply.
But its simplicity also carries with it inherent limitations.
Warning!
Use wisely.

There are other
P models that
actually look like
P’s !
(easy or hard to remember?)

I recommend students and marketing
professionals use this 54P marketing
stethoscope & diagnostic toolkit as an easy to
remember, quick, valid and useful tool for
marketing and business analysis.
54Ps works “most” of the time!
Prof. Remigio
(Bong) De Ungria
Ateneo Graduate
School of Business
Final Note
When to Use?

You are now a marketing doctor!
Use 7 tools & 54Ps stethoscope &
marketing diagnostic toolkit

54P Marketing Stethoscope and Diagnostic Toolkit: Paradigm Shift from Traditional 4Ps of Marketing

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54P Marketing Stethoscope and Diagnostic Toolkit: Paradigm Shift from Traditional 4Ps of Marketing