SAMAR COLLEGES, INC.

Mabini Avenue, Catbalogan City

SENIOR HIGH SCHOOL
Basic Education Department

MODULE 1
In
PRINCIPLES OF MARKETING

4TH Quarter
Second Semester, S.Y. 2020-2021

MA. EMERALDA B. VERZOSA

Subject Teacher

PRINCIPLES OF MARKETING
CHAPTER 4: Developing Marketing Mix

What Are the 4Ps of Marketing?

The 4Ps of marketing is a model for enhancing the components of
your "marketing mix" – the way in which you take a new product
or service to market. It helps you to define your marketing options
in terms of price, product, promotion, and place so that your
offering meets a specific customer need or demand.
The marketing mix is a good place to start when you are thinking
through your plans for a product or service, and it helps you to
avoid these kinds of mistakes. In this article and in the video,
below, we'll discover more about the marketing mix and the 4Ps,
and how you can use them to develop a successful marketing
strategy.
The marketing mix and the 4Ps of marketing are often used as
synonyms for one another. In fact, they are not necessarily the
same thing.
"Marketing mix" is a general phrase used to describe the different
kinds of choices organizations have to make in the whole process
of bringing a product or service to market.
The 4Ps are:
 Product (or Service).
 Place.
 Price.
 Promotion.
A good way to understand the 4Ps is by the questions that you
need to ask to define your marketing mix. Here are some questions
that will help you understand and define each of the four elements:

Product/Service
Is a bundle of attributes and benefits to be offered to buyers to
satisfy their needs, wants and demands. These products may either
be goods or services.
 What does the customer want from the product /service?
What needs does it satisfy?
 What features does it have to meet these needs?
 Are there any features you've missed out?
 Are you including costly features that the customer won't
actually use?
 How and where will the customer use it?
 What does it look like? How will customers experience it?
 What size(s), color(s), and so on, should it be?
 What is it to be called?
 How is it branded?
 How is it differentiated versus your competitors?
 What is the most it can cost to provide and still be sold
sufficiently profitably?

Physical Products have several added components:

 Packaging – The packaging serves to contain and protect,
and, sometimes, identify and promote the product. A
product’s packaging is different from it’s label. Product
packaging has several purposes:
 It protects the product in route to the consumer.
 It makes the product storage and display more
practical and effective.
 It preserves the product for further customer use.
 Labeling – is a display of information about a product on
its container, packaging, or on the product itself.
The following factors must be considered in deciding on
the labeling of a product to the target market.
  Establish the image or personality of the product
based on the tastes and preferences of the target
market.
 Determine the most important features of the
product to the target market.
 Determine where the product will be sold and
applicable regulatory requirements if any.
 Determine the placement of the product in relation
to other products, particularly competitors.

Place
 Where do buyers look for your product or service?
 If they look in a store, what kind? A specialist boutique or
in a supermarket, or both? Or online? Or direct, via a
catalog?
 How can you access the right distribution channels?
 Do you need to use a sales force? Or attend trade fairs? Or
make online submissions? Or send samples to catalog
companies?
 What do your competitors do, and how can you learn from
that and/or differentiate?
Supply Chain - is the network of all the individuals,
organizations, resources, activities, and technology involved in
the creation and sale of a product.
Product Distribution Types
There are three general ways on how a product can be
distributed using marketing intermediaries:
 Exclusive distribution- distribution is limited to a
select number of dealers, usually one or few.
 Intensive distribution- This product distribution type,
used mostly by fast-moving consumer goods and
convenience goods, involves making a product
available in as many retail outlets as possible.
  Selective distribution- positioned between exclusive
and intensive distribution, this type of distribution
involves the use of more than one but not as many
dealers as in intensive distribution.
Wholesaling and Retailing
Wholesalers and retailers are two of the crucial distribution
intermediaries, most especially in providing place utility for a
product’s customers.

Wholesaling - is the sale of goods to others to be sold.

Retailing- is defined as the sale of goods/service to the final

customer for/his personal consumption.

Price
Refers to the actual amount of money tendered by customers
before acquiring a product.
 What is the value of the product or service to the buyer?
 Are there established price points for products or services
in this area?
 Is the customer price sensitive? Will a small decrease in
price gain you extra market share? Or will a small increase
be indiscernible, and so gain you extra profit margin?
 What discounts should be offered to trade customers, or to
other specific segments of your market?
 How will your price compare with your competitors?
Pricing Strategies
The following are the strategies that can be used in pricing
product:
 Markup pricing – Is a pricing strategy that allows the
seller a fixed mark up every time the product is sold.
  Target return pricing – is a pricing method that
allows a product manufacturer to recover a certain
portion of his/her investment every year.
 Odd pricing or psychological pricing – a pricing
method premised on the theory that consumers will
perceive products with odd price endings as lower in
the price than they actually are.
 Loss leader pricing – a pricing strategy frequently
utilized by supermarkets.
 Price lining – a price strategy designed to simplify a
consumer’s buying decision.
 Marginal pricing- where a business organization
prices its product at a range below its unit cost but
higher than its unit variable cost.
 Predatory pricing- a pricing strategy is where the firm
prices its product lower than the unit variable cost,
initially resulting in short-term losses.
 Going rate pricing- a pricing strategy where a
company prices its product at the same level as or very
close to its competitors’ prices.
 Promotional pricing- a pricing strategy involving a
temporary reduction in the selling price of a
product/service in order to induce trial or to encourage
repeat purchase.
 Price skimming- where the product’s selling price is
way above its unit cost.
 Penetration pricing- a pricing strategy where the new
product is priced only marginally above its unit cost.

Promotion
Is that P OF Marketing designed to communicate the product to
customers.
  Where and when can you get your marketing messages
across to your target market?
 Will you reach your audience by advertising online, in the
press, on TV, on radio, or on billboards? By using direct
marketing mailshots? Through PR? On the internet?
 When is the best time to promote? Is there seasonality in
the market? Are there any wider environmental issues that
suggest or dictate the timing of your market launch or
subsequent promotions?
 How do your competitors do their promotions? And how
does that influence your choice of promotional activity?

Advertising- is defined as any paid and public presentation of

products, services, or ideas, by an identified sponsor through a
medium.

Brand awareness- is the extent to which consumers are

familiar with the distinctive qualities or image or a particular
brand of goods or services. Achieving a high level of
awareness provides the brand the following advantages:
 Learning advantages- which heavily influence the
formation and strength of associations that comprise the
brand’s image.
 Consideration advantages- which increase the
livelihood that the brand will be included in the
consumer’s “consideration set,” or the set of brands that
receive serious consideration for purchase.
 Choice advantages- which can affect choices among
brands included in the consideration set, despite the fact
that there may be no other associations to those brands.

Types of Media and Techniques Used in Advertising

Traditional Media and Techniques
 Radio- A viable advertising vehicle in the Philippines since
1922, radio is the most accessible media.
 Print- The first magazine in the Philippines was printed in
1840’s, while the English newspaper was published and
calculated in 1898.
 Television (TV)- Television has a very strong influence in
Philippine society since it’s introduction in the 1950’s.
Alternative Media and Techniques
 Cinema- The first motion picture appeared in 1904.
 Billboard- Relative low cost and exposure to heavy traffic
along major thoroughfares have led to the popularity of
billboard advertisements.
 Websites- Almost all legitimate companies have developed
websites that customers can access for product information
and services.
 Social Networking Sites- The large number of social
media users all over the has led to the popularity of social
networking sites as media for advertising.
 Directory Advertising – More commonly known as the
“Yellow Pages,” this medium has been declining rapidly.
 E-mail Advertising- There are currently 2.2 billion e-mail
users worldwide, transmitting 144 billion e-mails daily.
 Transit Advertising – Buses and jeepney in the
Philippines ply the same route every day. An advertising
signage on the side or back of a bus, a jeepney spare tire
cover, or perched atop a taxicab can create good brand
recall for the market.
 Online Ads- In the 2.4 billion Internet users worldwide, 1.1
billion are from Asia. These led to the Popularity of
Internet advertising, which permits target marketing
through the use of cookies generated by a web page.
  Direct Response Advertising- Used extensively on
television during specific period of the Day.
 Point-of-Purchase, Signs, Posters, and Leaflets- These
are relatively inexpensive ways to advertise and promote a
product.

2 Types of Promotions
 Trade promotions- are intended for marketing
intermediaries such retailers.
 Consumer promotions- are intended for consumers.
Consumer promotions “pull” consumers to brand retailers
or trade outlets to see, try, and/or purchase the product.

Learning Activity: (Write your answers in an extra sheets

Yellow paper)

1. Select an item that you frequently use: your mobile phone,

ballpen or pencil, wristwatch, hair brush, alarm clock,
eyeglasses, etc. Study the product and its packaging.
Consider also the manner by which you use the product.
Identify and describe in detail how you would innovate this
product to satisfy your needs and wants better.
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2. Comment on the statement “ In marketing, perception is

more important than reality.”
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 3. A retailer selling T-shirts wants to launch a sales
promotion. He normally sells his T-shirts at ₱200 each, but
is willing to sell each at only ₱100 in order to boost sales.
He is wondering what message would be most effective in
advertising his sale:
T-Shirts ₱100 Only! T-Shirts ₱100 Off!
T-Shirts 50% Off! T-Shirts ₱200 Buy One, Take One!
T-Shirts-1st Shirt ₱199.00, 2nd ₱1.00
T-Shirts ₱200 Buy One, Get One Free!
In your opinion, which of the sale signs would be the most
effective? Why? Defend your choice.
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