A B
1. Focus Group a. IT IS A FACE-TO-FACE CONTACT BETWEEN THE
Discussion(FGD) RESEARCHER/ENTREPRENEUR AND A RESPONDENT
2. Interview b. IT SIMPLY STATES WHY CUSTOMER SHOULD
BUY A CERTAIN PRODUCT OR SERVICE.
3. Survey
c. IT IS RELIABLE BECAUSE IT ALLOWS THE
RESEARCHER TO SEE THE REAL AND ACTUAL
BEHAVIOR OF CUSTOMERS RATHER THAN HEARING
WHAT THEY NEED TO SAY.
4. Observation
d. IT IS A STATEMENT YOU CHOOSE TO EMBODY
THAT DIFFERENTIATES YOUR PRODUCTS FROM YOUR
COMPETITORS.
e. IT IS A PROCESS OF MINING CUSTOMER AND
NONCUSTOMER EXPERIENCE AND INSIGHTS ABOUT
A SPECIFIC PRODUCT OR SERVICE.
f. IT IS THE PROCESS OF GETTING ANSWERS
FROM A SAMPLE OF RESPONDENTS DERIVED
FROM A PARTICULAR POPULATION.
Learning Objective:
Describe the Marketing Mix
(7Ps) in relation to the
business opportunity.
Specific Learning Objectives:
At the end of the discussion, the students should be
able to:
Describe the marketing mix (7Ps);
Explain the right tool to use to
strategize a market; and
Learn that marketing mix is essential in
having a business plan.
The Marketing Mix
These are the tools of
marketing management
employed by
marketers. They are
areas where marketing
managers need to make
decisions.
It is a widely accepted
strategic marketing tool that
combines the original 4Ps(
product, place, price,
promotion) with additional
3Ps( people, process and
packaging)in formulating
marketing tactics for a
product or service.
P’s
Of
Marketing
Mix
PRODUCT
PACKAGING
PRICE
POSITIONING
PLACE
PEOPLE PROMOTION
Product: The product is the primary – though not the only –
component of the 7 Ps of the marketing mix.
Is any physical good, service, or idea that is
created by an entrepreneur or an innovator in
serving the need of the customers and
addressing their existing problems.
Three-level concept of product:
Core Benefits of the
Product or Service
Physical
Characteristics of the
Product or Service
Augmented Benefits
of a Product or
Service
Price:
Is the peso value that the
entrepreneur assigns to a certain
product or service after considering
its costs, competition, objectives,
positioning, and target market.
Common Pricing Strategies:
Bundling Penetration Pricing
This refers to This refers to setting
two or more low prices to increase
products or market share, but the
entrepreneur will
services in one eventually increase the
reduced price. price once the desired
market share is achieved.
Common Pricing Strategies:
Skimming Competitive Pricing
This is the opposite This refers to
of penetration pricing benchmarking
where prices are prices with the
initially high and then
competitors.
they are lowered to
offer the product or
service to a wider
market.
Common Pricing Strategies:
Product line pricing Psychological Pricing
This refers to This considers the
pricing different psychology and
products or services
positioning of
within a parallel
product array using price in the
varying price points. market.
Common Pricing Strategies:
Premium pricing Optional Pricing
This refers to This refers to adding
setting a very high an extra product or
price to reflect service on top of the
original to generate
elitism and
more revenue.
superiority.
Common Pricing Strategies:
Cost-based pricing Cost plus pricing
The basis of The markup is
markup is the based on a certain
cost of sales. percentage of
cost.
Place: Refers to a location or the medium of transaction.
A place covers the product distribution and the whole
business logistics.
Provide customers with pleasant experience in buying
the product or availing of the service so that they will
keep on coming back whether in buying on-site or
online.
Products are not only sold in shops – they may also
be sold door-to-door, online, or in trade fairs or
markets.
Promotion: Promotion:
This is an Promotion
umbrella term, involves
covering all the
presenting the
media by which a
business informs products or
customers about services to the
its product – public and how
including these can address
advertising, public the public’s
relations and sales
needs, wants,
promotion.
problems, or
desires.
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 – the act of trading a product
•Sales Promotions – to convince
customers to buy immediately
People: Play a vital role in
servicing customers even though
the entrepreneur sells only
physical goods.
Packaging: This refers not just to
the way in which a product is
wrapped, but also to its overall
presentation, and the way in which
its physical arrangement is
designed to attract the customer.
Positioning: One of the most important of the 7 Ps of
marketing mix, positioning refers to a product’s status
in relation to the wider market, particularly how it
lines up against competitors.
It is a step-by-step
procedure or activity
workflow that the
entrepreneur or employees
follow to effectively and
efficiently serve customers.
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