Dara Module
Dara Module
GRADUATE SCHOOL
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Tel. No. (036) 6212-317 Fax No. (036) 6213-075
Congratulations! You have finished many assigned activities in the previous modules. Welcome
to Module five (5). This module introduces the Marketing Mix, more popularly referred to as the 7P’s
of Marketing. It is a set of controllable and interrelated variables composed of product, place, price and
promotions that a company assembles to satisfy a target group better than its competitor. Marketing
Mix strategy is selecting and applying the best potential means to achieve the organization’s vision and
gain competitive edge.
This module provides context and foundational knowledge. It is divided into two lessons.
Lesson 1 The Marketing Mix (7P’s) in relation to the business opportunity CS_EP11/12ENTREP-0h-j-10
Lesson 2 Develop a Brand Name CS_EP11/12ENTREP-0h-j-11
After reading this module, you should be able to:
1. describe the Concept of Marketing Mix;
2. identify the seven P’s in the Marketing Mix;
3. identify the commonly used brand strategy; and
4. developed a Brand Name.
You start discovering a new world – the world of business. Who knows, one day you may grow into
one of the successful entrepreneurs in our country can be proud of. However, you have to:
• Reading the texts carefully
• Follow the directions and/or instructions in the activities and exercises diligently
• Answer all the given test and exercises
• Describe the 4M’s (Manpower, Method, Machine, Materials) of operations in relation to the
business opportunity;
• Develop a product description;
• Create a prototype of the product; and
• Test the product prototype.
WHAT I KNOW
Before you start studying this module, take the following test to find out how much you already
know about this topic. Let’s check your prior knowledge, skills, and understanding of basic concepts
related to the Seven P’s in the Marketing Mix and Branding. This will guide you in understanding the
concept.
Now, are you ready? Before proceeding, let’s see what you already know. This test is particularly
prepared to determine your prior knowledge of the lessons you are about to encounter.
1) It is a set of controllable and interrelated variables composed of product, place, price and promotions
that a company assembles to satisfy a target group better than its competitor.
a. Price b. Marketing Mix c. Product d. Packaging
2) The amount that a customer pays for to enjoy it.
a. Price b. Marketing Mix c. Product d. Packaging
3) An item that is produced to satisfy the needs of a certain group of people.
a. Price b. Marketing Mix c. Product d. Packaging
4) It is a tangible product. It’s example includes tires, MP3 players, clothing and etc.
a. Branding b. Positioning c. Goods d. Place
5) It can be intangible or tangible as it can be in the form of services or goods.
a. Price b. Marketing Mix c. Product d. Packaging
6) The way your product or service appears from the outside.
a. Price b. Marketing Mix c. Product d. Packaging
7) A marketing model that modifies the 4Ps model.
a. Packaging b. 7 P’s Model c. Marketing Mix d. People
8) Responsible for every element of your sales, marketing strategies, and activities.
a. Packaging b. 7 P’s Model c. Marketing Mix d. People
9) How a business creates awareness in the market?
a. Place b. Brand Name c. Services d. Promotion
10) It is intangible. Its example includes hair salons and accounting firms
a. Place b. Brand Name c. Services d. Promotion
WHAT’S IN
In the previous lesson, you already know about a data collection. It is an important factor of any
research study. The three (3) ways of collecting data are Survey, Interview, and Focus Group Discussion
(FGD). This will help entrepreneurs in gathering information about their target market.
WHAT’S NEW
Directions: Think of words or terms related to the topic that starts with letter “P” and find the words
in the grid horizontally, vertically, or diagonally. Write the Words or Terms on the space provided and
write something about the word using your own words.
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1.____________________________________
______________________________________
2.____________________________________
______________________________________
3.____________________________________
______________________________________
4.____________________________________
______________________________________
5.____________________________________
______________________________________
6.____________________________________
7.____________________________________
_____________________________________
C. WHAT IS IT
1. PRODUCT
Marketing strategy typically starts with the product. Marketers can’t plan a distribution system or set a
price if they don’t know exactly what the product will be offered to the market.
Product refers to any goods or services that are produced to meet the consumers’ wants, tastes and
preferences. An example of goods includes tires, MP3 players, clothing and etc. Goods can be
categorized into business goods or consumer goods. A buyer of consumer goods may not have
thorough knowledge of the goods he buys and uses. An example of services includes hair salons and
accounting firms.
Services can be divided into consumer services, such as hair styling or professional services, such as
engineering and accounting.
2. PLACE
Place represents the location where the buyer and seller exchange goods or services. It is also called
as the distribution channel. It can include any physical store as well as virtual stores or online shops
on the Internet.
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Channel1 contains two stages between producer and consumer - a wholesaler and a retailer. A
wholesaler typically buys and stores large quantities of several producers' goods and then breaks into
bulk deliveries to supply retailers with smaller quantities.
For small retailers with limited order quantities, the use of wholesalers makes economic sense.
Channel 2 contains one intermediary. In consumer markets, this is typically a retailer.
A retailer is a company that buys products from a manufacturer or wholesaler and sells them to end
users or customers. In a sense, a retailer is an intermediary or middleman that customers use to get
products from the manufacturers.
Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the
manufacturer sells directly to customers.
3. PRICE
The price is a serious component of the marketing mix. What do you think is the meaning of a Price?
In the narrowest sense, price is the value of money in exchange for a product or service. Generally
speaking, the price is the amount or value that a customer gives up to enjoy the benefits of having or
using a product or service. One example of a pricing strategy is the penetration pricing. It is when
the price charged for products and services is set artificially low in order to gain market share. Once
this is attained, the price can be higher than before. For example, if you are going to open a Beauty
Salon, you need to set your prices lower than those of your competitors so that you can penetrate
the market. If you already have a good number of market share then you can slowly increase your
price.
4. PROMOTION
Promotion refers to the complete set of activities, which communicate the product, brand or service to
the user. The idea is to attract people to buy your product over others. Advertising, Personal Selling,
Sales Promotion, Direct Marketing, and Social Media are examples of promotion.
5. PEOPLE
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Your team, a staff that makes it happen for you, your audience, and your advertisers are the people in
marketing. This consists of each person who is involved in the product or service whether directly or
indirectly. People are the ultimate marketing strategy. They sell and push the product.
People are one of the most important elements of the marketing mix today. This is because of the
remarkable rise of the services industry. Products are being sold through retail channels today. If the
retail channels are not handled with the right people, the product will not be sold. Services must be
first class nowadays. The people rendering the service must be competent and skilled enough so that
that the clients will patronize your service.
Therefore, the right people are essential in marketing mix in the current marketing scenario.
6. PACKAGING
Packaging is a silent hero in the marketing world. Packaging refers to the outside appearance of a
product and how it is presented to the customers. The best packaging should be attractive enough and
cost efficient for the customers. Packaging is highly functional. It is for protection, containment,
information, utility of use and promotion.
7. POSITIONING
When a company presents a product or service in a way that is different from the competitors, they
are said to be “positioning” it. Positioning refers to a process used by marketers to create an image in
the minds of a target market.
Solid positioning will allow a single product to attract different customers for not the same reasons. For
example, two people are interested in buying a phone; one wants a phone that is cheaper in price and
fashionable while the other buyer is looking for a phone that is durable and has longer battery life and
yet they buy the same exact phone.
Brand Name is a name, symbol, or other feature that distinguishes a seller's goods or services
in the marketplace. Your brand is one of your greatest assets because your brand is your customers'
over-all experience of your business. Brand strategy is a long-term design for the development of a
popular brand in order to achieve the goals and objectives. A well-defined brand strategy shakes all
parts of a business and is directly linked to customer needs, wants, emotions, and competitive
surroundings
Experts believe that a good brand can result in better loyalty for its customers, a better corporate
image and a more relevant identity.
As more customers continue to differentiate between emotional and experienced companies, a
brand may be the first step forward in your competition instead of price points and product features.
The question is, can you build a brand which truly talks to your audience?
Branding is a powerful and sustainable high-level marketing strategy used to create or influence a
brand. Branding as a strategy to distinguish products and companies and to build economic value to
both customers and to brand owners, are described by Pickton and Broderick in 2001.
1) Purpose
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"Every brand makes a promise. But in a market in which customer confidence is little and budgetary
observance is great, it’s not just making a promise that separates one brand from another, but having
a significant purpose," (Allen Adamson).
How can you define your business' purpose? According to Business Strategy
Insider, purpose can be viewed in two ways:
a. Functional. This way focuses on the assessments of success in terms of fast and profitable reasons.
For example, the purpose of the business is to make money.
b. Intentional. This way focuses on fulfillment as it relates to the capability to generate money and do
well in the world.
2) Consistency
The significant of consistency is to avoid things that don’t relate to or improve your brand. Consistency
aids to brand recognition, which fuels customer loyalty.
3) Emotion
There should be an emotional voice, whispering "Buy me". This means you allow the customers have
chance to feel that they are part of your brand.
You should find ways to connect more deeply and emotionally with your customers. Make them feel
part of the family and use emotion to build relationships and promote brand loyalty.
4) Flexibility
Marketers should remain flexible to in this rapidly changing world. Consistency targets at setting the
standard for your brand, flexibility allows you to adjust and differentiate your approach from your
competition.
According to Kevin Budelmann, "Effective identity programs require sufficient consistency to be
identifiable, but sufficient variation to keep things fresh and human" so if your old tactics don't work
anymore, don't be afraid to change. It doesn’t mean it worked in the past it may still work now.
5) Employee Involvement
It is equally important for your employees to be well versed in how they communicate with customers
and represent the brand of your product
6) Loyalty
Loyalty is an important part of brand strategy. At the end of the day, the emphasis on a positive
relationship between you and your existing customers sets the tone for what potential customers can
expect from doing business with you.
7) Competitive Awareness
Do not be frightened of competition. Take it as a challenge to improve your branding strategy and craft
a better value in your brand.
Instruction:
Compare two competing brands using the 7Ps and debate which is more effective.
Follow up questions:
1. Which of the 7Ps do you think is the most important in today's digital market, and why?
2. Did the debate change your opinion about any of the marketing mix elements? How?
3. If you were launching a new product, which P would you prioritize first and why?
4. If you could add an 8th "P" to the marketing mix, what would it be and why?
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Manpower
Talks about human labor force involved in the manufacture of products. It is measured as the
most serious and main factor of production. The entrepreneur must determine, attain and match the
most competent and skilled employees with the jobs at the most appropriate time period.
Educational qualifications and experience, status of employment, numbers of workers required, skills
and expertise required for the job are some of the manpower criteria that must be highly considered
by the entrepreneur.
Material
Talks about raw materials necessary in the production of a product. Materials mainly form part
of the finished product. Just in case the resources are below standard, the finished product will be of
unsatisfactory as well. The entrepreneur may consider cost, quality, availability, credibility of suppliers
and waste that the raw material may produce.
Machine
Discusses about manufacturing equipment used in the production of goods or delivery of
services.
In the process of selecting the type of equipment to purchase, the entrepreneur may consider types of
products to be produced, production system to be adopted, cost of the equipment, capacity of the
equipment, availability of spare parts in the local market, efficiency of the equipment and the skills
required in running the equipment.
Method
Production method discusses the process or way of transforming raw materials to finished
products. The resources undergo some stages before it is finalized and becomes set for delivery to the
target buyers.
The selection of the method of production is dependent on product to produce, mode of production,
manufacturing equipment to use and required skills to do the work.
Product Description
It is the promotion that explains what a product is and why it’s worth buying?
The purpose of a product description is to provide customers with details around the features and
benefits of the product so they’re obliged to buy.
Know who your target market is, focus on the product benefits, tell the full story, use natural language
and tone, use power words that sell, and use good images.
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These are guidelines for you to have a good product description; since some customers are very
particular with it since they consider the welfare of their family, if it is safe to use.
Prototyping
A duplication of a product as it will be produced, which may contain such details as color, graphics,
packaging and directions. One of the important early steps in the inventing process is making a
prototype. Benefits are the reasons why customers will decide to buy the products such as affordability,
efficiency or ease of use. The features of the product or service merely provide a descriptive fact about
the product or service.
It is better to test your product prototype to meet customers’ needs and expectations; and for your
product to be known and saleable. Pretesting of the product or service is similar to a sample of the
product or service given to the consumer free of cost in order that he/she may try the product before
committing to a purchase.
Supplier
An entity that offers goods and services to another business. This entity is among of supply
chain of a business, which may offer the main part of the value contained within its products. Certain
suppliers may even involve in drop shipping, where they ship goods directly to the customers of the
buyer.
Suppliers are your business partners; without them your business will not live.
You need them as much as you need your customers to be satisfied. But as an entrepreneur you have
to choose a potential supplier that has loyalty and value your partnership; a supplier that would lead
you to the fulfillment of your business objectives, mission and vision.
Value chain is a method or activities by which a company adds value to an item, with production,
marketing, and the provision of after-sales service. The main goal and benefit of a value chain, and
therefore value chain analysis, is to make or support a competitive benefit.
A supply chain is a structure of organizations, people, activities, data, and resources involved in moving
a product or service from supplier to customer.
The main objective of supply chain management includes management of a varied range of
components and procedures, for instance, storing of raw materials, handling the inventory,
warehousing, and movement of finished product from the point of processing to the point of
consumption.
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The main objective of supply chain management includes management of a varied range of
components and procedures, for instance, storing of raw materials, handling the inventory,
warehousing, and movement of finished product from the point of processing to the point of
consumption.
Business model describes the reasons of how an organization creates, delivers, and captures
value in economic, social, cultural or other contexts. The development of business model construction
and variation is also called business model innovation and forms a part of business plan.
It is a company's plan for how it will make revenues and make a profit. It describes what products or
services the business plans to manufacture and market, and how it plans to do so, as well as what
expenses it will incur.
There are important phases in developing your business model, namely;
Identifying the specific audience; establishing business process; recording a business resources;
developing strong value proposition; determining key business partners; and creating a demand for
today’s generation strategy and be open for innovations.
After developing a business model, we will proceed in developing a business plan. To be able to
successfully complete this module, you need to prepare a business plan and operate your plan and
finally keep records of your business transactions.
Business plan is an important tool for you to have an idea about the future of your business.
Your business plan will be your guide in the moment you will be implementing and operating your
business proposal.
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You can also make use of the business plan in securing investment capital from financial institutions or
lenders. It can also be used to influence people to work for your enterprise, to secure credit from
suppliers, and to fascinate potential customers.
Read the stories of Jessie, Mercy and Monna below to fully understand the importance of having
a business plan:
“Jessie is the eldest of five children of Mr. & Mrs. Natividad. The family is having difficulty to support
for their everyday needs. Because of this, Jessie tried to enter selling banana cue and with his dream
to make his business grow, he put up many stalls in the community without considering the advises of
his friends to make a business plan before implementing his decision. After a few months his stalls
shutdown.”
“Mercy is the youngest in the family. She found out that she loves to cut hair and apply make up to
her friends. Until such time that her friends introduced her to their friends too for haircut and make up
when there are occasions. Few months after,
Mercy was told by her friends to put up a beauty parlor in their place. So she asks her mother who is
also a businesswoman to teach her how to make a business plan and eventually ended with a successful
business.”
“Monna is a diligent student. Because of her knowledge gained from school mabout business plan she
was able to enhance her skills in business and finally found herself into his laundry shop business.”
Each scenario taught us that business is not just about how much income or profit you can get
but it’s about the life of your business. And in having a business, you also have to consider technological
forces, Social forces, Political forces, Cultural forces, Economic forces and Legal forces.
The following are the components found in a Business Plan.
Introduction- this part discusses what is the business plan all about.
Executive Summary- is part of the business plan which is the first to be presented but the last to be
made.
Management Section- shows how you will manage your business and the people you need to help
you in your operations.
Marketing Section- shows the design of your product/service; pricing, where you will sell and how
you will introduce your product/service to your market.
Financial Section- shows the money needed for the business, how much you will take in and how
much you will pay out.
Production Section- shows the area, equipment and materials needed for the business.
Competitive Analysis- is the strategy where you identify major competitors and research their
products, sales and marketing strategies.
Market- The persons who will buy the product or services
Organizational chart- is the diagram showing graphically the relation of one official to another, or
others of a company.
General Directions: Answer the following questions based on your learnings about 4M’s of production
and Value Chain or Supply Chain. Write your answer on the space provided. Five (5) points in each
correct answer.
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Problem. “In your home, when you want to eat egg sandwich before going to school, your mother
would surely prepare it for you. Your egg sandwich would not be produced without a process.”
1. Who would be your manpower? _______________________________
2. What would be your materials? ________________________________
3. What machines or tools would you use? _________________________
4. What methods are needed to produce the egg sandwich? (Cooking procedures- enumerate
them).
______________________________________________________________
Marketing mix constitutes of the 7P’s in case of products – product, price, place and promotion.
In case of services it constitutes of 3 more P’s – people, packaging and positioning.
All P's should be compatible in marketing mix. The price is compatible with the product's placement.
The product must be consistent with the promotion. In general, all P’s are connected intrinsically.
As a result, when you make a marketing mix, it becomes a chain of strong bonds.
Then these connections will lead you to lengthen the chain. Whenever you plan to add or change
existing features, you need to see the general image which helps create a fresh product in marketing
mix.
Branding is absolutely critical to a business because of the overall impact it makes on your company.
Branding can change how people percept your brand, it can drive new business and increase brand
awareness.
Pictionary Style
Direction: Follow the task guide below.
TASK GUIDE:
Who are your What is your
Target Market? Product ? Suitable Name
(age, gender, (description) for the Product
income)
Your Sketch
Here are some useful phrases that may help you with your tasks and explanations:
My Target Market is/are _______________________________________________.
I would like to introduce my new product ___________________________________
___________________________________________________________________.
I chose the name ___________________ because __________________________
___________________________________________________________________.
You can use it to _____________________________________________________
I chose the Brand Name _________________________ because ______________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________.
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References
Ronaldo S. Batisan, DIWA Senior High School Series: Entrepreneurship Module. Diwa
Learning Systems Inc.
Angeles A. De Guzman. Entrepreneurship (For Senior High School, Applied subject, ABM Strand. Lorimar Publishing, Inc
2018, 25 – 26.