ENTREPRENEURSHIP
Quarter 1 – WEEK 8
Marketing Mix
Learning Outcomes
: Upon the completion of the given
unit, the SHS learners are expected
to apply the 7Ps of marketing to
augment the sales of the business.
Marketing deals on how to convince
customers to patronize the products and
maintaining customer value towards them.
Marketing plans are considered essential in
captivating the target m a r k e t a n d surpassing the
quality o f the products a n d services of the
competitors. The company needs to adopt a business
strategy to fully create a great impact towards
potential client such as the marketing mix: Product,
Place, Price, Promotion, People, Packaging and
Process.
T he 4Ps such as p roduct, place, price, and
promotion are also k n o w n as a marketing mix. It
is one of the effective tools in marketing. In
conveying marketing schemes, additional factors are
added: People, Packaging, and Process. If these 7Ps
are present, t h e y b e c o m e s u bstantial i n the
operation of the establi s h m e n t s in addressing the
customer ’s needs, wants and deman d s an d
customer ’s value and satisfaction.
Based on BPI- SHAPE, 2016, below are the Marketing 7Ps:
1. PRODUCT
It is tangible and discernible items that you can
physically touch, has packaging and usually a shelf life which
an organization produces.
Service is the production of an essentially intangible
benefit, either in its own right or as a significant element of a
tangible product, which through s ome form of exchange,
satisfies an identified nee d. Sometimes services are difficult to
identify because they are closely associated with a good.
To develop a product or service here are the things
you should consider:
What value do you offer to customers?
• What does the customer want from the product or
service?
• What features does it have to meet these needs?
• Ho w and where will the customer use it?
• What does it look like?
• What size(s), color(s), should it be?
• What is it to be called?
• H o w it is branded?
• How it is differentiated versus your competitors?
2. PLACE
You should very well investigate where to locate your
business. Accessibility is very important, but also prices of
the rent. Let the participants think of different possible
locations for their business.
• Where is the location/ how is the product or service distributed?
• Where do buyers look for your product or service?
• If they look in store, what kind?
• H o w can you access the right distribution channels?
• Do you need to use a sales force?
• What do your competitors do, and how can you learn from
that and or differentiated?
3. PRICE
Yo u r price s h o u l d b e h i g h e n o u g h to m a k e a profit, a n d
l o w e n o u g h to encourage people to buy it. T h e price depends o n
the product, the place and the people.
What is the quantity of the payment from one party to
another in exchange
for goods or services?
• Are there established price points for products or services in
this area?
• Is the customer price sensitive?
• What discounts should be offered to trade customers?
• How will your price compare to those of your competitors?
4. PEOPLE
Referring to your target market. According to
Entrepreneur. Com, target market is a specific group
of customers at which a company aims its products
and services. Your target customers are those that
most likely to buy from you.
5. PACKAGING
It refers to the physical appearance of h o w the product is
presented.
P a c k a g e o r p a c k a g i n g m e a n s a n y container o r w r a p p i n g in
w h i c h the consumer product is enclosed for use in delivery or display of
that consumer product to retail purchasers, b u t d o e s n o t include :
a. Shipping containers or wrapping used solely for
t r a n s p o r t a t i o n o f a n y c o n s u me r p r o d u ct in bulk or in big
quantities b y manufacturers, packers, or processors to wholesale,
retail, distributors thereof;
b. shipping containers or outer wrappings u s ed b y retailers to ship
or deliver a n y product to retail customers s u ch as containers a n d
w r ap p i n g bears n o printer ma t t er pertaining a n y particular
product ;
c. the w r a p p e r s or containers o f c o n s u me r products sold in small
quantities by small retail stores to the consu mer which b y
tradition are wrapped with ordinary paper.
6. POSITIONING
A n effort to inf luence c o n s u m e r p e r c e p t i o n o f a b r a n d o r p r o d u c t
relative t o t h e p e r c e p t i o n o f c o m p e t i n g b r a n d s o r p r o d u c t s . Its o b j e c t i v e is to
o c c u p y a clear, unique, a n d a d v a n t a g e o u s position in t h e c o n s u me r ’s mi n d .
Pos itioning i s d e v e l o p i n g a p r o d u c t a n d b r a n d i m a g e in t h e
m i n d s o f c o n s u m e r s . It c a n als o i n c l u d e i m p r o v i n g a c u s t o m e r ’s
p e r c e p t i o n a b o u t t h e e x p e r i e n c e t h e y wi ll h a v e if t h e y c h o o s e t o p u r c h a s e
y o u r p r o d u c t o r s er vice . T h e business c a n positively influence the perception
of its chos en customer bas e through strategic p r o mo t i o n a l activities a n d b y
carefully def ining y o u r bus ines s ’ ma r k e t i n g mix.
Effective positioning involves a good understanding o f competing
products and the benefits that ar e s o u g h t b y y o u r target ma r k e t . It also
requir es y o u to identify a differential a d v a n t a g e w i t h w h i c h it will deliver the
r equir e d benefits t o the m a r k e t effectively against the competition . B us ines s
s houl d a i m to define thems elves in the eyes of their cus tomer s i n regards to
their competition .
7. PROMOTION
This is how you make clear what you sell, where people can
find you, why they should com e to you. Yo u can do this by publicity,
advertising, a n d flyers. Creativity is very important.
Raising customer awareness of a product or band,
generating sales, a n d
creating brand loyalty.
• W h e r e a n d w h e n c a n y o u get across y o u r m a r k e t in g m e s s a g e s
to your target market?
• Will you reach your audience by advertising?
• W h e n is the best time to promote?
• H o w do your competitors d o their promotions? H o w does
that influence your choice of promotional activity?
Promotional Tools (Batisan, 2016)
1. Advertising – This is a type of communication that
influences the behavior of a customer to choose the
product or service of the entrepreneur over the
competitors. The objectives of advertising include the
following: (a) informing, educating, and familiarizing
the public with the product and service offerings;
(b)building a trustworthy image; and (c)increasing
sales.
The entrepreneur can choose to advertise through the
following:
• Television – regular channels, cable TV
• Radio – AM & FM radio
• Internet – e-mails, w e b sites, blogs, social media,
search engines, podcasts
• Mobile phones – text messages, mobile applications,
mobile internet
• Print – newspapers, magazines, flyers, directories,
signage, posters
• O u t -of-h o m e – billboards, buses, b u s stops, trains,
train stations, taxis, street advertisements
2. Selling – This is the act of trading a product or
service for a price or a fee. The entrepreneur mu st
identify the target customers w h o will likely b u y
the product or service.
3. Sales promotions – These are short-term
promotional gimmicks wherein practical
incentives and appealing activities are
incorporated to entice the customers to b u y the
product or avail of the service.
4. Public relations – These are image building initiatives o f the
entrepreneur to m a k e the n a m e of the business reputable to
stakeholders, s u c h as the target customers, g o v e r n m e n t
agencies, business partners, m e d i a , a n d the public. Examples
of P R strategies are as follows:
• P ress conferences
• Launching events
• Strong m e d i a relations through press kits
• Social responsibility events (e.g. charitable or community
events)
• Lobbying (e.g. good relationships with government officials)
• We b public relations (e.g. blogs, social m e d i a , e -m a ils,
w o r d -of-mouth)
