MARKETI

NG MIX AS
A
BUSINESS
STRATEGY
TEACHER MHILES
Table of contents
01 02 03
PRODUCT PLACE PRICING

04 05 06
PROMOTION PEOPLE PACKAGING
07
POSITIONING
 01
PRODUCT
 LET’S ENGAGE

Why should businesses revisit

their products from time to
time?
LEARNING
OBJECTIVES
• Learn the concept and usage of
the marketing mix in
entrepreneurship.
• Acquire knowledge as to the
different stages of product
development.
 LET’S EXPLORE

Can you Have you ever

remember any purchased a Do you prefer
impactful product through shopping online,
marketing any form of or would you go
concept by any advertisement? to a store instead?
business or
brand?
The Marketing Mix
A marketing mix is a special tool used in
the implementation of any business,
which is made up of seven distinct but
interconnected variables.
The Traditional 4Ps and New
7Ps
• The original components of the marketing mix were
four different yet interrelated variables. Such a
framework was used for marketing decision-making
of any form of business. The essential pillars of the
traditional 4Ps are product, price, place, and
promotion.
• In addressing the continuing concerns in the
marketing industry, three other variables were added
towards the creation of the current 7Ps: people,
packaging, and positioning.
The Extended 7Ps
 PRODUCT
• A product refers to any item that is
produced to satisfy the needs and
demands of a certain group of
people. It has a life cycle that
revolves around its growth,
maturity, and after-sales
performance.
Essential Questions
What do the In what way will
consumers want the consumers use
from the product? the product?

What additional What should be the

features should the name or brand of
product have to the product?
address the needs of
the consumers? How does the
product differ from
the products of the
other competitors?
 Unique Selling Proposition
• A lot of products these days have no
clear competitive advantage in the
market.

• With this kind of situation,

differentiation is a vital aspect that
must be established by any business.
—TIP
When creating a
unique selling
proposition, a business
must primarily focus
on the main factor that
sets it apart from other
competitors.
 Product Classifications
Tangibles Intangibles
Tangible products are those items that Intangible products are those
have actual physical presence. items that have no physical
The benefits of these products can be presence and can only be felt
evaluated based on visual comparisons. indirectly.

Examples: Tangible
and Intangible
Products
Stages in the Development of a Product
—Strategy Development
Businesses often decide on effective strategies prior to the
creation of a new product.

—Generation of Ideas
The ideas or concepts in developing a new product may come
from various sources and not only from the upper management
itself.

—Screening and Evaluation

All ideas generated must go through proper evaluation wherein
their feasibility is being determined. There are also ideas that do
not resonate well with the core objectives of the business.
Stages in the Development of a Product
—Business Analysis
During this phase, the ideas thrown in become subject to a more
rigorous analysis. Other factors, such as profit projections, risks
involved, and consumer feedback, are likewise taken into
consideration.

—Product Development
It is during this stage that the product is introduced to the
market. The production department will be tasked to produce
and deliver the product to various intermediaries, and the
marketing department will be tasked to take care of the
branding of the product.
Stages in the Development of a Product
—Market Testing
Businesses adopt different approaches to testing the new
product. In most situations, test marketing involves the
introduction of the new product to a small market. If such
launching were successful, then it would be introduced to
larger market size.

—Commercialization
If the outcome of the previous test marketing were
successful, the business would introduce the product to a
larger market, either locally or internationally.
 WRAP UP!
• A marketing mix is a special tool used in the
implementation of any business, which is made
up of seven distinct but interconnected variables.

• A product refers to any item that is produced to

satisfy the needs and demands of a certain group
of people.
 02
PLACE
 LET’S ENGAGE

What is the right approach to

getting the product from the
manufacturing point to the
end consumer?
LEARNING
OBJECTIVES
• Learn the significance of
placement or distribution
strategies in entrepreneurship.
• Identify the different distribution
strategies adopted by businesses.
 LET’S EXPLORE

Where do you
usually buy your Why do you think Do you often
essential needs some people purchase goods
(e.g., food, prefer buying from convenience
drinks, and other goods from the stores? Why or
prime wet market than why not?
commodities)? from the
supermarket?
Introduction of “Place” in Marketing
Mix

a location in any business process

where the aspects of
management, product storage,
logistics, processing of orders, and
inventory control are being made
available
 Distribution Channels
• A distribution channel contains
a set of interdependent
organizations that are involved
in the process of making a
product or service available to
the end consumers.
Why do businesses give
intermediaries or
distribution channels the
job of selling their
products?
TYPES OF DISTRIBUTION
CHANNEL
Direct distribution
In this type of distribution channel, the
manufacturer or producer directly distributes the
product to the end consumer.

Indirect distribution
Any business using an indirect distribution channel will
always employ selling through an intermediary. Generally,
the business will sell its products to a wholesaler who
further reaches out to a retailer to target more consumers.
TYPES OF DISTRIBUTION
CHANNEL
Dual distribution
The dual distribution channel involves a combination of direct and
indirect selling strategies. Businesses may opt to sell their
products directly to the end consumers, and they may also reach
out to several intermediaries at the same time.

Reverse channels
The reverse channel has a different course—from the end
consumer, next to the intermediary, down to the beneficiary
or user. In this kind of distribution channel, the consumers
will be using goods for recycling and repurposing.
Examples: Reverse Channel Distribution
What factors will you take
into account in choosing
the right distribution
channel for your business?
 INTERMEDIARY
• Intermediaries are the
middlemen who play a vital
role in the distribution of
products to the market.
 Types of Intermediary
Wholesaler Retailer
A wholesaler is engaged in the buying and Individuals engaged in retailing
handling of goods in bulk or large quantities, typically purchase goods at a low
which are subsequently sold to retailers in price, which are then resold to earn
various areas. a profit.

Distributor Agent
The primary role of a distributor is to obtain The core service of an agent typically
products from the manufacturer itself and revolves around bringing buyers and sellers
distribute it to various retailers and other together towards a negotiation process. In
endpoint locations. most cases, agents earn money through
commissions and fees paid for their services.
 Distribution Strategies
Intensive distribution Selective distribution
In this kind of distribution strategy, products Luxuries and other products that are
are distributed to as many retail outlets as upscale in nature are primarily
possible. Low-priced products such as gums, distributed through selected
candies, and other basic supplies are channels.
oftentimes distributed using this approach.

Exclusive distribution
When products are being sold to only one
specific retailer, the exclusive distribution
strategy is being employed. With this
strategy, the retailer has exclusive rights to
sell the products of a business.
•
WRAP UP!
The element of “place” in the marketing mix is
deemed to be a location in any business process
where the aspects of management, product
storage, logistics, processing of orders, and
inventory control are being made available.
• A distribution channel contains a set of
interdependent organizations that are involved in
the process of making a product or service
available to the end consumers.
 03
PRODUCT
PRICING
 LET’S ENGAGE

What is product pricing

considered as core component
of every business?
LEARNING
OBJECTIVES
• Identify the element of product
pricing in the marketing mix.
• Discuss how product pricing
impacts the marketing and the
overall strategies of a business.
 LET’S EXPLORE

Does the price of Do you believe

What factors do a product greatly that high-priced
you consider affect your products are also
before purchasing purchasing high-quality
a product? decisions? products?
Product Pricing in Marketing
Mix
Pricing is the only revenue-
generating element in the
marketing mix. That is why it is
firmly linked with the revenue
streams of any business.
Objectives of Proper Pricing
• being able to attain the financial
goals of the business
• being realistic and befitting the
realities of the economic
situation in the country
• resonating well with the other
elements of the marketing mix
Pricing as a Marketing Activity
• Product pricing is significant in
any business model because it
signifies the capability of an
entrepreneur to assess the value
that consumers see towards the
products and services offered.
REMEMBER
Pricing is the only
revenue-generating
element in the
marketing mix; that is
why it is firmly linked
with the revenue
streams of any
business.
Five Common Pricing Strategies
—Cost Plus Pricing
A cost-plus pricing strategy primarily focuses on the total costs attributed to
producing the product of service. It is otherwise known as a mark-up pricing
strategy because businesses increase the prices of their products before
they are sold again to the end consumers.

—Competitive Pricing
A competition-based pricing strategy pays attention to the prices currently
existing in the market. This strategy focuses on the prices set by the
competitors in the industry as its point of reference.

—Value – Based Pricing

This pricing strategy is used by businesses that focus on the consumers’
responses towards a product or service offered.
Five Common Pricing Strategies
—Price Skimming
Price skimming is a strategy used by businesses when
introducing new products or services to the market. This pricing
strategy is executed by setting high prices for new products and
services.

—Penetration Pricing
In contrast to price skimming, the main objective of a
penetration pricing strategy is to obtain market share.
Products and services by businesses are typically offered at
low prices, effectively drawing out the competition in the
market.
Can you think
of other pricing
strategies used
by businesses?
Categories of Pricing Issues
—Buyer-seller Interactivity
The amounts displayed in stores are not even the actual prices that buyers
have to pay. Rather, prices have to be first negotiated during an interaction
between the seller and the buyer.

—Price Discrimination
When a product is sold at different prices to different consumers, it is called
price discrimination. From the perspective of any business, price
discrimination may present several advantages, most especially profit
maximization.
Categories of Pricing Issues
—Opportunistic pricing
Well-known businesses and some luxury brands may have the
opportunity of charging a hefty price to their products.
Opportunistic pricing is oftentimes used to drive competitors
out of the industry based on efficiency.

—Perfect Format
This pricing issue involves how a price is expressed to the market.
Businesses adopt the practice of pricing a product a cent or two below the
round number (Php 99.99 or Php 199.99), which has the psychological
effect of lowering the leftmost digit.
 WRAP UP!
• Product pricing is significant in any business
model because it signifies the capability of an
entrepreneur to assess the value that consumers
see towards the products and services offered.
• A pricing strategy pertains to the method of
setting the best and accurate price for a specific
product or service.
 04
PRODUCT
PROMOTION
 LET’S ENGAGE

What are the ingredients in

the promotional aspect of the
marketing mix?
LEARNING
OBJECTIVES
• Recognize the role of promotion in
the marketing mix.
• Identify and apply the different
promotional strategies as part of
the marketing plan of a business.
 LET’S EXPLORE

How often do you Do you click the

see Are you usually advertisements
advertisements on persuaded by that you see on
television and on advertisements in different social
the internet? purchasing items? media platforms?
Product Promotion in Marketing
Mix
Its primary aim is to attract the
customers’ attention, as well as
provide useful information
about the product to build
interest and loyalty.
Objectives of Creating a Promotional Plan
To create brand or product
awareness

To generate demand

To differentiate a product from

its competitors
Why is promotion a vital
component of the
marketing strategies of
any business?
Five Main Components of Promotional Mix
—Advertising
• This promotional method is used to create awareness and deliver
information to the target audience.
• Traditional forms of media include television, newspapers, magazines,
and billboards.
—Personal Selling
• One of the effective ways to persuade potential customers is
through personal selling.
• Generally, this method is adopted by salespersons in managing
personal customer relationships.
—Sales Promotions
• Sales promotions include both media and non-media tactics used to
increase the demand towards the products and/or services offered by
any business.
Five Main Components of Promotional
Mix
—Public Relations and Sponsorships
• To maintain a sustainable relationship between the business
and its customers, public relations tactics are executed. This
component of the promotional mix is used for attaining long-
term effects.

—Direct Marketing
• Direct marketing allows any business to communicate freely
with its customers. Marketing techniques such as mobile
messaging, distribution of flyers or catalogs, and outdoor
advertising are a few examples of direct marketing.
Promotional Marketing in the Digital
Era
Social Media Marketing
Many businesses are utilizing
different social media platforms
to communicate their products
and services to their target
audience.
What are the different
social media platforms
utilized by businesses
nowadays?
Promotional Marketing in the Digital
Era
—Content Marketing
Content can be presented in various formats, including blogs,
e-books, how-tos, online articles, forums, and so forth.
This promotional strategy aims to attract new and potential
customers by creating and sharing valuable information.

—Affiliate Marketing
Affiliate marketing takes into account the presence of third
parties who are responsible for giving commissions or
rewards to their affiliates.
Promotional Marketing in the Digital
Era
—Email Marketing
Email marketing is a relatively low-cost promotional strategy
that aims to build brand and customer loyalty.

—Search Engine Optimization

(SEO)
Search engine optimization (SEO) is an umbrella term for the
different methods used in increasing the visibility of a
website or blog online. It considers different kinds of search,
including image search, news search, and video search.
Example: Affiliate Marketing
Are you familiar with
some search engine
optimization techniques
used by marketers and
business owners?
 WRAP UP!
• Promotion is an element of the marketing
mix that aims to address concerns relating
to the advertising aspect of any product or
service.
• The primary aim of any promotional
strategy is to attract the customers’
attention, as well as provide useful
information about the product to build
interest and loyalty.
• Digital marketing is the umbrella term for
various marketing tactics performed on the
internet.
• Social media marketing is one of the many
tactics employed by businesses that
include the usage of various social media
platforms for advertising products and
services.
 05
PEOPLE
 LET’S ENGAGE

What is the role of

people in the marketing
mix?
LEARNING
OBJECTIVES
• Identify the vital role of people in
the marketing mix.
• Describe the importance of a
workforce in the operations of a
business.
 LET’S EXPLORE

Who are the staff Have you ever

Who are the or employees that been persuaded
different you usually by any
employees and/or encounter as a salesperson to
professionals consumer? avail of a
working in your product? How did
school? you react?
People in Marketing
Mix
“People” is regarded as a primary
key toward a successful
implementation of marketing
strategies of any business.
 People in Marketing Mix
• People play a vital role in service
delivery as well as in customer
relationship retention.

• These people are relied on by the

business to design, develop,
manufacture, and produce products to
the end consumers.
REMEMBER
As a component of the
marketing mix, people are
those relied on by the business
to design, develop,
manufacture, and produce
products to the end
Recruitment Methods
—Internal recruitment
Internal recruitment is the process of filling vacant employment
positions by the employees who are already working within the
business premises.

A. PROMOTION
• It aims to shift any employee from a lower
position to a higher one with more
responsibilities attached, remuneration, and
ranking privilege.
Recruitment Methods
B. TRANSFERS
• It involves the shifting of an employee from one
department to another, depending on the
qualifications of the position involved.

C. EMPLOYEE REFERRALS
• With this approach, current employees may refer
people who they think are suitable or fit for the
job. This is adopted by most businesses, for it
saves cost and time compared to hiring people
from various external sources.
 Can you think of
other internal sources
of recruitment?
Recruitment Methods
—External Recruitment
This type of recruitment refers to the hiring of employees
outside the business. Applicants seeking opportunities
have no connection with the internal affairs of the
A. EMPLOYMENT
business.
AGENCIES
• Employment agencies are typically run by public,
private, and government sectors. These sectors
maintain a database where vital information of
qualified candidates are stored and kept.
Recruitment Methods
B. ADVERTISEMENTS
• Recruiting through advertisements is very popular and
much preferred by a lot of employers. Job vacancies
are thoroughly described and announced through
different print and electronic media.

C. WALK - INS
• This direct form of external recruitment is done
when prospective candidates are invited to apply
for any job vacancy. In this case, a definite date,
time, and venue of the interview are given to the
candidates without the need to submit their
applications in advance.
Motivated Workforce
Motivation pertains to a person’s direction to
behave or act in life. In the entrepreneurial
aspect, managing motivation is a critical aspect
of the success of any business.

Employers must motivate their employees by

setting an example and identifying what the
employees really desire.
Motivated Workforce
Acknowledge any employee’s achievement.
Every individual wants to be recognized for something
that he or she has remarkably done or made. A simple act
of acknowledgment from the higher-ups will mean a lot to
any employee.

Offer employee rewards.

Always remember that employees will stay in business if
they have a reason to. Starting an incentive program will
keep them motivated and will help them stay focused.
Proper Customer Service
It must be remembered that a great business
is one that provides excellent customer
service.
To be able to give this kind of service, a
group of high-caliber employees must be
present to answer or resolve the queries of
the customers and to make sure that they
are getting their money's worth.
What qualities should
an employee possess if
he or she is engaged in
customer service?
Training and Development
Training and development primarily deals
with the acquisition of know-how,
techniques, and strategies needed in
performing a specific work.

This is one of the essential aspects of human

resource management as it helps in
enhancing the existing skills of an employee.
Benefits of Training and Development
—Resolves any weaknesses
A training and development program may help to instill in the employees the
required skills and knowledge needed for a specific job. Through this, businesses
will be able to resolve any weak points existing among their employees.

—Boosts employee satisfaction

When a business invests in its employees, it signifies that they are highly
valued and looked up to. Besides, a training and development program
results in a supportive workplace.

—Increases work productivity

The productivity of an employee generally increases when a business
executes training programs. In most scenarios, there would also be an
increase in efficiency that will lead to the success of any project.
 WRAP UP!
• In the entrepreneurial aspect, people are those
relied on by the business to design, develop,
manufacture, and produce products to the end
consumers. They are high-caliber people who are
able to contribute to the success and growth of
the business.

• Internal recruitment is the process of filling

vacant employment positions by the employees
who are already working within the business
premises.
• External recruitment is a type of recruitment that
refers to the hiring of employees outside the
business.
 06
PRODUCT
PACKAGING
 LET’S ENGAGE

How does product packaging

play an essential role in the
sales performance of any
business?
LEARNING
OBJECTIVES
• Identify the functions of product
packaging.

• Understand the role of product

packaging in the marketing mix.
 LET’S EXPLORE

How important is Do you easily get What is your

product persuaded to stand on the use
packaging to you buying products of eco-friendly
when you make that have packaging
purchase aesthetic materials?
decisions? packaging?
Product Packaging in Marketing
Mix

Packaging can make or break the

success and growth of a business, so it
is important to innovate packaging that
fulfills its essential functions.
Product Packaging in Marketing
Mix
• The only way for consumers to notice
any product is through store displays,
shelves, point-of-purchase displays,
and product packaging.
• A great deal of making purchase
decisions is allotted to color testing
and psychological manipulation.
Product Packaging in Marketing
Mix
• Some consumers are easily influenced
by the external features of a product.

• This is precisely the role of packaging

in marketing—it can be used as a tool
to encourage or persuade consumers
to purchase a product.
• Why do you think
product packaging
plays a vital role in
marketing?
Essential Questions
What do the In what way will
consumers want the consumers use
from the product? the product?

What additional What should be the

features should the name or brand of
product have to the product?
address the needs of
the consumers? How does the
product differ from
the products of the
other competitors?
Elements of Product Packaging
—Visual Elements
During the process of package designing, it must be remembered that consumers
assess product packaging in their own different ways. One major component of
this element is graphics, which include image layout and typography.

—Color Combinations
Color is a key element of design because it is an important consideration in
brand awareness and recognition. An excellent color combination has the
ability to make a product stand out from the competition.

—Informational Elements
The inclusion of necessary product information is also important in
product packaging. This has to be communicated to the consumers to
help them in making the right purchase decision.
Functions of Packaging
—Protection
One of the main reasons why a product is always wrapped or
bottled is to protect it from external and environmental factors.
Packaging performs a big role, most especially in the logistics
aspect.

—Information
The packaging must contain essential pieces of information
about the product, such as nutrition content, usage
directions, ingredients, and storage instructions.
Functions of Packaging
—Convenience
Part of the normal operations of a business is to store, transport,
and distribute its products to the end consumers.

—Security
A product that is sealed perfectly has higher chances of being
bought by a consumer. To make sure that products are stored
in excellent condition, packaging must be taken into
consideration.
 Packaging as a Marketing Tool
• Product packaging can serve as a
useful tool in the marketing strategies
of a business.

• A good packaging strategy will enable

the business to persuade the
consumers to buy the product.
Packaging as a Marketing Tool
—Brand Recognition
The proper combination of color themes and well-designed
graphics in product packaging is deemed to be effective in
keeping a product in the limelight.

—Product Identification
Sticking to packaging that represents the main colors of a
brand will help the customers identify the product when
shopping at their favorite store.
 WRAP UP!
• The role of packaging in marketing is to be
used as a tool in encouraging or persuading
consumers to purchase a product.

• The elements of product packaging are

visual elements, color combinations, and
informational elements.

• The following are the functions of product packaging:

 to protect the product,
 to inform the consumer,
 to provide convenience, and
 to secure the product.
 07
PRODUCT
POSITIONING
 LET’S ENGAGE

How are you going to

position your product in the
midst of a very competitive
environment?
LEARNING
OBJECTIVES
• Identify the role and objectives of
product positioning.

• Remember the important

elements of product positioning.
 LET’S EXPLORE

What do you Do you usually How important is

understand by stick to a a brand for you
being a “brand- particular brand when making
conscious for every product purchase
shopper”? category? Why or decisions?
why not?
Product Positioning in Marketing Mix
Product positioning pertains to the
basic marketing tool that
businesses use to improve sales by
targeting a product to a particular
group of people.
Product Positioning in Marketing Mix
Through product positioning, a
product is able to occupy a unique
spot in the minds of the consumers
that will help them in making a
final purchase decision.
Can you think of strategies
or approaches that
businesses use in making
their products or services
stand out in a competitive
market industry?
Segmentation, Targeting, and Positioning (STP)
Model

The segmentation, targeting,

and positioning (STP) model is a
marketing framework that guides a
business toward the development
of a successful product positioning
strategy.
 SEGMENTATION
To properly position a product in
the market, market segmentation
helps in classifying groups of
people based on common
characteristics and preferences.
 SEGMENTATION
Consumers can be segmented
according to the following factors:
 Demographic
 Geographic
 Psychographic
 Behavioral
What other factors
can be considered
in segmenting
markets?
 TARGETING
After properly segmenting the
intended audience, the next step is
to decide which segments to focus
on by taking into consideration
their potential and commercial
attractiveness.
—TIP
In order to target the best
customer segments, try to
conduct a PEST analysis
that will help in assessing
any political, economic,
sociocultural, or
technological barriers that
can affect the strategy of a
business.
POSITIONING
—First off, there must be a clear perception of what a
consumer needs to be able to formulate a proper product
positioning.
—Second, determine a unique selling proposition to be able
to send a clear message to the consumers as to why they
should purchase a specific product rather than those of the
competitors.
—Lastly, develop a value proposition that will
completely answer the needs and demands of the
consumers toward a product.
Do you know any
brands or businesses
that have good product
positioning strategies?
Four Elements of Product Positioning
—Vision and mission

—Product category

—Customer pain points

—Product differentiation
Product Positioning Statement
A product positioning statement
is a statement that is strategically
used by businesses to instill into
the minds of the target market a
positive image of their products
and services.
Product Positioning Statement
A well-crafted product positioning
statement must be able to describe the
intended audience of a product and the
crucial reasons why customers should
choose it over all others. It is a
statement that makes the product
different from its competitors.
 WRAP UP!
• Product positioning pertains to the basic
marketing tool that businesses use to
improve sales by targeting a product to a
particular group of people

• The four elements of product positioning are

vision and mission, product category,
customer pain points, and product
differentiation.

• A product positioning statement is a

statement that is strategically used by
businesses to instill into the minds of the
target market a positive image of their
products and services.
 01
PERFORMANCE
TASK
 Marketing Mix Plan

You will come up with a marketing mix

plan by incorporating and expounding
all the 7Ps in
your proposed product.
Marketing Mix Plan
Marketing Mix Plan
Marketing Mix Plan