Republic of the Philippines

Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

Entrepreneurship
MODULE 3: Marketing Mix (Week 7)
QUARTER 1 - TLE_ICTAN11/12EM-Ia-1

The Marketing Mix. “Marketing Mix Definition - 4Ps & 7Ps of the Marketing Mix”. July 08, 2020.
https://marketingmix.co.uk/

Introduction WORDS YOU WILL

ENCOUNTER
In over-all terms, marketing mix is a variation
of different factors that can impact a revenue
consumer’s choice to purchase a product or use a service. relevant
It most usually refers to the 4Ps of marketing─product, clutter
price, promotion and place. value
market firm
profitability
These four factors can be measured by a business to a
suitable
certain extent. When “mixed” or blended strategically,
they can produce chosen behaviors from your target
viewers.

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 1

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

It can also help businesses realize their product and service offerings and the best ways to
plan for a successful launch and marketing strategy.

Learning Targets:
At the end of this module the learners should,
1. discuss the definition and description of a product;
2. explain how to evaluate product;
3. describe different pricing strategy that marketing mix have;
4. identify different pricing strategy;

Let’s try this:

A. Pictionary
Which of these pictures could inspire new innovation (products)? Put a check
mark on the picture and give one product for each as possible business from
these sources. (25 pts.)

PRODUCT: PRODUCT:

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 2

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

PRODUCT:

PRODUCT:

PRODUCT: PRODUCT:

PRODUCT: PRODUCT:

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 3

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

PRODUCT: PRODUCT:

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 4

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

Lesson 2
(Week 7) Product and Price
Do this
Direction: From the activity you have answered on the portion “Let’s try this”. Give an
estimated price for your innovative products for your target customers.

Innovative Products Price

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 5

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

Discussion

Product
 A product is the item offered for sale.
 A product can be a service or an item.
 It can be physical or in virtual or cyber form.
 Every product is made at a cost and each is sold at a price. The price that can be
charged depends on the market, the quality, the marketing and the segment that is
targeted. Each product has a useful life after which it needs replacement, and a life
cycle after which it has to be re-invented

A product needs to be relevant:

A product needs to be communicated:

Users and potential users must know why they need to use it, what benefits they
can derive from it, and what it does difference it does to their lives. Advertising and 'brand
building' best do this.

A product needs a name:

a name that people remember and relate to. A product with a name becomes a
brand. It helps it stand out from the clutter of products and names.

A product should be adaptable:

with trends, time and change in segments, the product should lend itself to
adaptation to make it more relevant and maintain its revenue stream.

PRICE
 price is the amount of money charged for a product or a service. But there must be
more than that.

 the price is the sum of all the values that a customer gives up to gain the benefits of
having or using a product or service. Thus, customers exchange a certain value for
having or using the product – a value we call price.

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 6

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

 price is still one of the most important elements of the marketing mix that may
determine very much of a firm’s market share and its profitability.

 the price is one of the most flexible marketing mix elements. While product features
and channels, for instance, are rather inflexible, prices can be changed quickly to
meet changing conditions.

 prices play a key role in creating customer value and building customer
relationships.
The role of pricing decisions in the marketing mix
 When deciding a price for an existing product or a new product, the business must
be careful to choose a price that is suitable with the market.

Some products are sold in very competitive markets so they will have to set the
price near to the competitors' prices.
Pricing strategies

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 7

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

A business can adopt new pricing strategies for several reasons:

 to try to break into a new market

 to try to increase its market share
 to try to increase its profits
 to make sure all its costs are covered and particular profit is earned


The main methods of pricing

Cost-plus pricing involves estimating the amount of product that are going to be
produced, then calculating the cost of manufacturing this product and then add a
percentage mark-up for profit.

 The method is easy to apply

 You could lose sales if the selling price is higher than your competitors' price

Cost-plus formula:

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 8

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

Competitive pricing is when the product is priced just below the

competitors' prices to try to attract more customers

 Sales are likely to be high as your price is at a realistic level,

not under- or over-priced
 It takes time to research about the competitors' price

Penetration pricing is when the price is set at a low price to enable to

enter a new market

 It ensures that sales are made and the new product enters the market
 The product is sold at a low price so there might not be a lot of profits

Price skimming is where a high price is set for the new product
of the market

 Skimming can help to establish the product as being of

good quality
 It may put off some potential customers because of the
high price

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 9

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

Promotional pricing is when a product is sold at a very low price for a short period of
time.

 It is useful to get rid of unwanted products that will not sell.

 Renew interest in a business if sales are falling.
 Revenue could be lower because of the low price

Psychological pricing is the practice of

setting prices slightly lower than a whole number. This
practice is based on the belief that customers do not
round up these prices, and so will treat them as
lower prices than they really are. ... This type
of pricing is extremely common for consumer goods.

Apply what you have learned

Do This!
Activity sheet 1.1: Examine the pictures carefully. Answer the questions that follow.
1. Identify the pricing strategy that is being used in this
ad.

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 10

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

2. Explain when a business should use this pricing

strategy.

3. Explain the effects that this price might have upon

demand for the business products.

(“Cherry Mobile Ace Flash Sale, Firefox Phone for Php990”)

Activity sheet 1.2 Pricing

The picture below shows the change of the prices that 8Waves offer its customers.
Answer each questions. (20pts)

1. Identify the pricing strategy that is being used by the company.

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 11

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

2. 8Wave would have many costs involved in running their business. List 10-15 costs
that 8Wave would have.

3. Explain why the “Off-Season” price is generally more expensive than “Summer
Season.”

4. Estimate the percentage mark-up that 8Wave puts on top of its cost to find the final
price. Justify your answer.

Assessment

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 12

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

The Marketing Mix: Price and Product

A. Answer each statements (10pts)
1. Understand the relationship between price and demand.

___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
________________________________________________________.
2. Explain the Three pricing strategies; Price Skimming, Price Penetration, and Competitive
Pricing.

___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
_____________________________________________________________________________________

B. Evaluating a Product (10pts)

Look at the product below. Answer the following questions, some question need to tick the boxes.
What is the Where would you
product? be able to buy this
product?
A Drink
Food Most food shops
Stationary
Health shop
What do you think Nursery
the price?
Where would you see this
Over 10.00 product advertised?
Around 20.00
Around 30.00 -
60.00
MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 13
SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

(“Coke Zero Cans 330ml Pack of 24”)

(“Coke Zero Cans 330ml Pack of 24”)

Why do you think the main competition for this product is? Try and give more than one.

Reflection
Self-Check

The final section of the lesson would be a self-check or self-evaluation of the learner
to see if he/she has understood the unit enough to see it working in their own lives. It is
also a way of closing out the unit by reiterating the objectives and seeing whether these
were met upon completion of the unit by the learner. In the skills column, you can state
here the competencies the learners’ should have achieved at the end of the unit.

Check As an Entrepreneur, I can…

Reflect

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 14

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

Finding solution to the problem...

Today I have learned that ________________________________________________________.

I find __________________________ the most interesting because ______________________.
I got ____ checks because _______________________________________________________.
I need to improve on _______________________because _____________________________.
I need to practice _________________________ because _____________________________.
I plan to _____________________________________________________________________ .

References
Website:
The Economic Times. “What is Product? Definition of Product, Product Meaning”. July 09,
2020. https://economictimes.indiatimes.com/definition/product

Marketing. “What is a Price? - Definition of Price - Marketing-Insider”. July 09, 2020.

https://marketing-insider.eu/what-is-a-price/

Claessens, M. (2015). What is a price? - Definition of price.

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 15

SENIOR HIGH SCHOOL Teacher I
 Republic of the Philippines
Department of Education
Region III - - Central Luzon
Schools Division OF CITY OF
MEYCAUAYAN MEYCAUAYAN
NATIONAL HIGH SCHOOL

ReliefWeb.” Philippine flood victims still in need – Philippines”. July 09, 2020.
https://reliefweb.int/report/philippines/philippine-flood-victims-still-need

Adobe Stock. “Stock photos, royalty-free images, graphics, vectors & videos”. July 09,
2020. https://stock.adobe.com/ph/search?filters%5Bcontent_type%3Aphoto%5D=1

Unit 13 - The Marketing Mix: Price.” Phuc’s Website, nguyenhoangphuc.weebly.com/unit-

13---the-marketing-mix-price.html.
(“Cherry Mobile Ace Flash Sale, Firefox Phone for Php990”)

“8 Waves Waterpark & Hotel.” Www.Facebook.Com,

www.facebook.com/8waveswaterpark/photos/a.10150580205216770/1015631380160677
0/?type=3&theater. Accessed 9 July 2020.

(“Coke Zero Cans 330ml Pack of 24”)

Brahme, Dr Mihir. “Psychology Behind Pricing- Secret To Sell More!” T1 2016 MPK732
Marketing Management (Cluster B), 2 May 2016,
mpk732t12016clusterb.wordpress.com/2016/05/02/psychology-behind-pricing-secret-to-
sell-more/. Accessed 10 July 2020.

Book:
Guzman, I. D. (2016). The Young Entrepreneur. Quezon City: Golden Cronica Publishing.
Jr., E. M. (2016). Entrepreneurship . Manila: Rex Book Store.
Macatangay, L. (2015). Entrepreneurship. Makati: Don Bosco Press.

MEYCAUAYAN NATIONAL HIGH SCHOOL FLORIE S. ASUNAN 16

SENIOR HIGH SCHOOL Teacher I