Week 7 Myra F.

De Leon
Entrepreneurship Subject Teacher

Recognize the importance of

marketing mix in the
development of marketing
strategy
Describe the marketing mix (7ps) in relation to
the business opportunity vis-à-vis: product,
place, price promotion, people, packaging, and
positioning;
 Objective

The learners shall be able to

[Link] the importance of
the 7ps of Marketing
[Link] their own jingle
[Link] their jingle and
post it online as a
commercial
Guess the brand
Defining the
Marketing Mix
Reaching Customer through
Marketing Mix
The value proposition is a simple,
powerful statement of value, but it is
only the tip of the iceberg.
How do marketing professionals
ensure that they are reaching and
delivering value to the target
customer?
Take yourself, as a “target
customer.”

Think about your cell

phone. What would make
you want to buy a new
one?

How might the following

issues affect your
purchasing decision?
 Features: A company Price: You’re concerned
has just released a new about the price—is this
phone with amazing phone a good deal?
features that appeal to Information: How did you Too expensive? So
you. find out about this cheap that you suspect
phone? Did you see an there’s a “catch”?
ad? Hear about it from a
friend? See pictures and
comments about it
Customer service: Is online?
your cell service
Convenience: Could
provider making it
you easily buy it
easier for you to buy
online in a moment
this phone with a new
of indulgence?
plan or an upgrade?
There are multiple factors that might influence your
thinking and decision about what to buy—a mix of
factors. Taken together, these factors are all part of
the “marketing mix.”
Organizations must find the right combination
of factors that allow them to gain an
advantage over their competitors.

This combination—the marketing mix—is

the combination of factors that a company
controls to provide value to its target
customers.
 THE
MARKETING
MIX
MARKETING MIX
•The Marketing Mix is one of two interrelated components of strategy
•The Marketing Mix, more popularly referred to as the 7Ps of Marketing 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 it’s
competitor.
•Marketing Mix strategy is choosing and implementing the best possible course of
action to attain the organization’s long- term objectives and gain competitive
edge.
 PRODUCT
To satisfy the needs and wants of the target market.

▪There is no point in developing a product or service that no one wants to buy, yet
many businesses decide what to offer first, and then hope to find a market for it
afterwards. In contrast, the successful company will find out what customers need
or want and then develop the right product with the right level of quality to meet
those needs now and in the future.
• The perfect product must provide value for the customer. This value is in the
eye of the beholder, we must give our customer what they want, not what we
think they want.
• A product does not have to be tangible, an insurance policy can be a product.
• You need a system in place to regularly check what your customers think about
your product, your supporting services.

MARKETING MIX
Product
• Methods used to improve/differentiate the
product and increase sales or target sales more
effectively to gain a competitive advantage e.g.
1. Extension strategies
2. Specialised versions
3. New editions
4. Improvements – real or otherwise!
5. Changed packaging
6. Technology, etc.
SAMPLE OF PRODUCT POSITIONING
Different products and services within the same category serve different
customer needs.
Positioning is creating an image for a product in the customer’s
mind. Businesses position a product in a certain market to get a
desired response. Product features, price and quality maybe used for
positioning.

Example: Jaguar and Kia sell automobiles, but these two positioned
very differently. Jaguar is a pricey cars positioned to meet the needs of
those consumers who desire high quality and status, while Kia is
positioned to satisfy the need for an inexpensive family automobile.
Jaguar I-PACE Latest Kia Carnival / Grand
model Carnival Lates Model
P7,590,000 P1,995,000 - P2,395,000
PLACE
To make the product conveniently available to the target
market consistent with their purchasing pattern.
▪The place where customers buy a product, and the means of
distributing your product to that place, must be appropriate and
convenient for the customer. The product must be available in
the right place, at the right time and in the right quantity, while
keeping storage, inventory and distribution costs to an
acceptable level.

• Customer surveys have shown that delivery performance is

one of the most important criteria when choosing a supplier.
MARKETING MIX
PLACE

• The means by which products and services

get from producer to consumer and where they
can be accessed by the consumer

• The more places to buy the product and the

easier it is made to buy it, the better for the
business (and the consumer)
 PLACE
• Retail - A business or person that sells goods to the
consumer, as opposed to a wholesaler or supplier,
who normally sell their goods to another business.
Or we can say that selling directly to consumers.

• Wholesaler - Person or firm that buys large quantity

of goods from various producers or vendors,
warehouses them, and resells to retailers.
Wholesalers who carry only non-competing goods
or lines are called distributors.
PLACE

 Direct selling - Face to face presentation, demonstration,

and sale of products or services, usually at the home or
office of a prospect by the independent direct sales
representatives.

Employed by firms such as Avon, Mary Kay, and

Tupperware, direct selling differs from network marketing in
that it offers little or no incentives for recruiting ever
increasing number of sales representatives.
PROMOTIONS
To build and improve consumer demand.
Promotions has four components called the
Promotions Mix as follows:
•Advertising – to effectively inform and
persuade the target market
•Public Relations – to offer a positive image
of the company and the brand
•Selling – to get the customers buy
•Sales Promotions – to convince
customers to buy immediately
MARKETING MIX
PROMOTION
▪Promotion is the way a company communicates whatit
does and what it can offer customers. It includes
activities such as branding, advertising , PR, corporate
identity, sales management, special offersand
exhibitions.

▪Promotion must gain attention, be appealing, tell a

consistent message and above all else give the customer
a reason to choose your product rather than someone
else‘s.
PROMOTION
 Good promotion is not one-way communication, It paves
the way for dialogue with customers.

 Promotion should communicate the benefits that a

customer obtains from a product, and not just the feature of
that product.

 Whether your promotional material is a single sheet or a

complex brochure, folder or catalogue, it must grab the
attention of your customers. It should be easy to read and
enable the customer to identify why they should buy your
products.
PROMOTION
1. Advertising - The activity or profession of producing
information for promoting the sale of commercial products
or services.

2. Branding - An identifying symbol, words, or mark that

distinguishes a product or company from its competitors.
Usually brands are registered (trademarked) with a
regulatory authority and so cannot be used freely by other
parties. For many products and companies, branding is an
essential part of marketing.
• Online advertising has become widely used
by the business. Online technology lets
businesses interact with customers through
online chat rooms, blogs, and newsletters.
Types of Online Advertising
Banner Ad – A graphic image or animation displayed with in a rectangular box
across the top or down the side of the web page
Floating Ad- An ad that moves across the screen or floats above the page
content
Wallpaper Ad- An ad that changes the background of the page being viewed
Trick Banner – A banner ad that looks like a dialog box with buttons, often n
appearing like an error message or an alert
Pop Ad- A new window that opens in front of the current one, displaying and
advertisement
Paying for Online Advertising

Cost Per Mil (CPM) – the charge is based on the

exposure of the message to specific audience. CPM are
prices per thousand viewers reached with the message.
Cost per click (CPC) – the charge based on the
number of clicks on the advertisements.
Cost per Action (CPA)- the charge based on the user
completing a form for newsletters, or taking some action
that will lead to sale.
PROMOTION
 Endorsement - A written or public statement by a
celebrity, business or professional group extolling the
virtues of a product and recommending the use of the
product to the public.

A product endorsement from an authoritative figure is a

key element in business advertising and marketing
campaigns.

 Competitive advantage – promotion differentiate your

product with your competitors. And provide edge in
business.
PROMOTION
 A brochure isn‘t necessarily the best way of
promoting your business, the problem being that
once a brochure has been printed, the information is
fixed. You can‘t change or remove anything should
the need arise.
A more cost effective and flexible option might be a
folder with a professionally designed sheet inside,
over a series of your own information sheets can be
customized by varying them to suit the target
customers and/or changing them as required.
Promotion does not just mean communicating to
your customers. It is just as important to ensure
your internal stakeholder are aware of the value
and attributes of your products.

This mean communicating effectively to your

staff/fellow employees and share expertise with
their customers.
 “You have to make
your product stand out
from all the others in
the market”
PRICE
To make the product affordable to the target market
and reflect the value of benefits provided.
A product is only worth what customers are prepared to pay for it.
The price also needs to be competitive, but this does not
necessarily mean the cheapest; the small business may be able to
compete with larger rivals by adding extra services or details that
willoffer customers better value for money.

Your pricing must also provide a profit. It is the only element of the
marketing mix that generate revenue, everything else represents a
cost.
MARKETING MIX
PRICE

•Thinking of price as “cost‘ to the customer helps to underscore

why it is so important.

•Price positions you in the market place – the more you charge,
the more value or quality your customers will expect for their
money.

•Existing customers are generally less sensitive about price than

new customers, a good reason for looking after them well.

If you decide in favour of a higher priced added- value approach,

remember that price “positions‘ you in the marketplace.
Different Pricing Strategy

1. Price Skimming

An approach under which a producer sets a high price for a

new high-end product (such as an expensive perfumes) or
a uniquely differentiated technical product. Its objective is
to obtain maximum revenue from the market before
substitutes products appear. After that is accomplished, the
producer can lower the price drastically to capture the low-
end buyers and to thwart the copycat competitors.
Different Pricing Strategy

2. Penetration pricing

A marketing strategy used by firms to attract customers

to a new product or service. Penetration pricing is the
practice of offering a low price for a new product or
service during its initial offering in order to attract
customers away from competitors. The reasoning
behind this marketing strategy is that customers will
buy and become aware of the new product due to its
lower price in the marketplace relative to rivals.
Different Pricing Strategy
3. Psychological pricing
Setting prices according to the
psychographics of the aimed-at market
segment.
Psychological pricing
Prestige pricing -selling at a high price in order to create a
feeling of superior quality and social status. The customer believe
that the higher the price the higher the quality of goods.
Odd/even Pricing- customer have this feeling that when price
ends with odd number it sounds like cheaper compared to an
even
Price Linings - offering different level of prices for a specific
category based on their features and quality.
Promotional Pricing - this is offering lower price for limited
period of time. This is temporarily since it will return to normal
when promotion ends.
Multiple Unit Pricing- pricing items in multiple (like just
bundles) like 100 for 3.
PEOPLE
They are the target consumers of the company.
They are the ones who are the consumers
 People represent the business
 The image they present can be important
 First contact often human – what is the lasting image
they provide to the customer?
 Extent of training and knowledge of the product/service
concerned
 Mission statement – how relevant?
 Do staff represent the desired culture of the business?
MARKETING MIX
PHYSICAL APPEARANCE/EVIDENCE

Physical appearance is the first distinction of a product. A product

could be easily recognized by it’s appearance.
• The ambience, mood or physical presentation of the environment
• Smart/shabby?
• Trendy/retro/modern/old fashioned?
• Light/dark/bright/subdued?
• Romantic/chic/loud?
• Clean/dirty/unkempt/neat?
• Music?
• Smell?

MARKETING MIX
PROCESS
The process of the product is essential in marketing. This
determines the capability of the product to supply the demand
of the consumers.
 How do people consume services?
 What processes do they have to go through to acquire the services?
 Where do they find the availability of the service?
 Contact
 Reminders
 Registration
 Subscription
 Form filling
 Degree of technology MARKETING MIX
•Product, place and people are considered as the
strategic Ps of marketing mix since they cannot be
changed overnight.

•Promotions, price, process andphysical

appearance are consideredas the tactical Ps of
marketing mix because these can be changed
more easily.
THE MARKETING MIX
• Blend of the mix depends upon:
• Marketing objectives
• Type of product
• Target market
• Market structure
• Rivals‘ behaviour
• Global issues – culture/religion, etc.
• Marketing position
• Product portfolio
•Product lifecycle
•Boston Matrix
Finding the Right Marketing Mix

How does an organization determine the right marketing mix? The answer depends on the
organization’s goals. Think of the marketing mix as a recipe that can be adjusted—through small
adjustments or dramatic changes—to support broader company goals.

Decisions about the marketing-mix variables are interrelated. Each of the marketing mix
variables must be coordinated with the other elements of the marketing program.

The goal with the marketing mix is to align marketing activities with the needs of the target
customer.
THANK
YOU!