Assignment

1. What is marketing mix?

2. The 4 original meaning of marketing mix and now the 7 modified
meaning of marketing mix.
NGETIKRMA
XIM
MARKETING MIX
At the end of the lesson, the learner
should be able to:

1. Discuss the concept of marketing mix

1. Identify the seven Ps in the marketing

mix.
As an entrepreneur you must
design a particular program
or strategy that will deliver
the value of your product to
the target customers.
Marketing mix –
also known as the
4Ps in marketing
Original meaning It was modified
PRODUCT PRODUCT
PLACE PLACE
PRICE PRICE
PROMOTION PROMOTION
PEOPLE
PACKAGING
POSITIONING
THE 7Ps
IN PRODUCT PLACE

MARKETING

Customer-
POSITIONING driven PRICE
Strategy

PACKAGING PEOPLE PROMOTION

 PRODUCT
 Tangible good or intangible service

 The product must satisfy the needs of the

consumers, product that cannot meet the needs
of the consumers will not stay long in the
market.

 The product is only produced once there is an

existing need or want.
 Product mix strategy
 They make different products or services
available to the consumers on top of the
primary product.

 Example: MERCURY DRUG

WAS formed and designed to primarily sell a
complete line of pharmaceutical products. Today,
however, mercury drug has already included
household merchandise, food, toiletries, among
others as part of its PRODUCT MIX.
 PLACE
THE PLACE WHERE THE TARGET
CONSUMERS ARE

ENTREPRENEUR MUST ESTBLISH HIS /

HER BUSINESS IN THE MOST STRATEGIC
PLACE OR LOCATION.
 “PUT YOUR BUSINESS
WHERE YOUR CONSUMERS
ARE WILLING TO BUY THE
PRODUCT.”
EXAMPLE:

IT YOU INTEND TO ENGAGE IN

SELLING SCHOOL SUPPLIES, IT
WOULD BE APPROPRIAT TO PLACE
THE BUSINESS NEAR SCHOOLS,
COLLEGES, OR UNIVERSITIES WHERE
THE TARGET CUSTOMERS ARE.
 PRICE
 CAN BE VIEWED FROM TWO OPPOSING
PERSPECTIVE:

1. THE PERSPECTIVE OF THE ENTREPRENEUR

WHO PRODUCES THE PRODUCT

2. THE OPPOSING PERSPECTIVE OF

CONSUMERS WHO ULTIMATELY BUT THE
PRODUCT.
NORMALLY PRODUCERS APPLY
HIGHER PRICES FOR THE
PRODUCTS TO GAIN A HIGHER
PROFIT, WHILE THE
CONSUMERS WANT LOWER
PRICES FOR THE PRODUCTS.
VARIABLES THAT HIGHLY INFLUENCE THE
SETTING OF PRICES OF GOODS & SERVICES

Availability of the competing

products
When the supply of the competing
product is high, the price of the
product is usually low.
Take a look at the example of the “Law
of the Supply and Demand”
ECONOMICS
 Examples of the Supply and Demand Concept
Supply refers to the amount of goods that are available.
Demand refers to how many people want those goods.
 When supply of a product goes up, the price of a product
goes down and demand for the product can rise because it
costs loss.
 At some point, too much of a demand for the product will
cause the supply to diminish. As a result, prices will rise.
The product will then become too expensive, demand will go
down at that price and the price will fall.
 Supply and demand should reach an equilibrium. The amount
of goods being supplied is the same as the amount
demanded and resources are allocated efficiently.
 Examples of the Law of Supply
 Corncrops are very plentiful over the course of the year and
there is more corn than people would normally buy. To get rid
of the excess supply, farmers need to lower the price of corn
and thus the price is driven down for everyone.
 There is a drought and very few strawberries are available.
More people want the strawberries than there are berries
available. The price of strawberries increases dramatically.
A huge wave of new, unskilled workers come to a city and all of
the workers are willing to take jobs at low wages. Because
there are more workers than there are available jobs, the
excess supply of workers drives wages downward.
 Examples of the Law of Demand
A popular artist dies and, thus, he obviously will be producing
no more art. Demand for his art increases substantially as
people want to purchase the few pieces that exist.
A cultural fad item that was all-the-rage for a period of time
falls out of favor and is no longer "cool." Demand for the item
falls dramatically as it is no longer the must-have item of the
season.
A new restaurant opens up in town and gets great reviews.
There are only 12 tables in the restaurant but everyone
wants to get a reservation. Demand for the reservations goes
up.
 Cost of making the product
refers to the amount spent by the
manufacturer in view of the expected
future benefits.

the basic rule is that the entrepreneur

should not set a price lower than the cost
involved in making the product.
Type of product
Presence of substitute products
is threat to the primary product.

the consumer can easily switch

and buy the substitute products with
lower prices especially when the
primary product is not available.
Stages of the product in the market
1. Introductory stage
2. Growth stage -the public becomes more aware of the
product; as sales and revenues start to increase, profits begin
to accrue.
3. maturity stage-sales will peak as the product reaches market
saturation, and competition will grow increasingly fierce.

4. decline stage- At this point, there is a downturn in the market.

For example, more innovative products are introduced or consumer tastes have
changed. There is intense price cutting, and many more products are withdrawn
from the market. Profits can be improved by reducing marketing spending and
cost cutting.
 Demographic Profile of the Target
Consumers
since the final buyers are the consumers,
their demographic profile highly influences
the process of setting the most appropriate
prices of the goods or services. Consumers who
belong to the higher economic status in the
community usually buy products that are
highly proced.
 PROMOTION
 Refersto the mode of conveying the presence
and attributes of the product to the target
consumers.

 Createsawareness of the products in the minds

of consumers and elicits their desire to buy it.

 Advertising,
Publicity, Personal selling, Sales
promotion, Direct marketing
 PEOPLE
Individual employees or workers
who are directly involved in the
production, marketing, and sale of
the product or service. Hence,
entrepreneur must be sure to hire
the right person for the position.
Finding the right person for a position
entails cost on the part of the business
venture. The amount of salary is
dependent on the educational
qualifications, technical expertise, and
professional experiences of the applicant.
The higher the requirement for the job,
the higher the salary level.
 PACKAGING
 Process of putting the product in a package or a
container.
 Mustbe user friendly , that is, it must be easy to open,
handle, and store. It can be resealable and reusable. It
can be environment friendly.
 The label printed on the packaging material must be
attractive, readable, and complete with the necessary
product information.
 POSITIONING
The place occupied by the
product in the minds of the
consumers.

The last marketing stage in the

customer identification process.
 PERFORMANCE TASK:
FORM GROUPS OF FIVE. THINK OF A POSSIBLE
ENTREPRENEURIAL VENTURE THAT YOU WANT
TO OPEN BECAUSE OF BUSINESS
OPPORTUNITIES. DETERMINE WHAT PRODUCT
TO PRODUCE OR SELL. PREPARE A PRINT OR
DIGITAL ADVERTISEMENT TO PROMOTE YOUR
PRODUCT TO THE TARGET CONSUMERS.