The

marketing
mix
Lesson 4 in Entrepreneurship Subject
 OBJECTIVES
At the end of this lesson, the learners will be
able to:

• Recognize the importance of marketing mix

in the development of marketing
strategy(TLE_ICTAN11/12EM-Ia1)

• Describe the Marketing Mix (7Ps) in relation

to the business opportunity
Word of
wisdom
 MOTIVATIO
N
Discussion Question:

1. If you have given the chance to sell a product

what would it be and why?

The marketing mix basically addresses the following questions:

1. How can you influence your target consumer to but the

product or service?
2. What marketing strategy must be adopted to convince the
consumers that the product or service being offered
satisfies their needs?
 INTRODUCTION
The marketing mix simply refers to a mode,
means, or tool used by the entrepreneur to
position the product in the target
market segments to efficiently and
effectively deliver it to consumers and to
convince them about the benefits that they
will derived\ from buying the product.
 the modified framework of
marketing mix
• Original 4 P’s of The 7 P’s
Marketing Mix Model
• Edmund Jerome
McCarthy (February 20, • PRODUCT
1928 – December 3,
• PLACE
2015) was an American
marketing professor and • PRICE
• In the late 70’s it was
author. • PROMOTION
widely acknowledged by • PEOPLE
Marketers that the
• PACKAGING
Marketing Mix should
be updated. This led to • POSITIONING
the creation of the
Extended Marketing Mix.
 1st element: product
• Product refers to the tangible good
or intangible service offered by the
business to the target consumers.
• The products must satisfy the needs
of the consumers better than the
other competing products.
• The product is the nucleus of the
marketing mix.
• Big businesses nowadays adopt the
concept of product mix where they
make different products or services
available to the consumers on top of
the primary product.
 2nd element: place
• The term place in the marketing
mix refers to the place where
the target consumers are.
• Having a plenty of people as a
strategic place for your business
does not assure the potential
growth of business.
• The basic entrepreneurial concept
relative to place in the marketing
mix is to put your business
where your consumers are
willing to buy the product.
 3rd element: PRICE
• According to
https://marketingmix.co.uk/price/ that Price
is the amount of money that your customers
have to pay in exchange for your product or
service.
2 Perspectives in concept of pricing
• the perspective of the entrepreneur who
produces the product – apply higher
prices to gain profit
• the opposing1.perspective of the
Availability of thecompeting
consumersproducts
There are some
who ultimately2. Costbuy the the
of making product.
product -
variables that highly
want lower 3. Type of product
influence the setting of prices for the product
4. Presence of substitute products
prices of goods and
5. Stages of the product in the market
services. These include
6. Demographic profile of the target
the following:
consumers.
 Availability of the Competing
Products
When the supply of the competing
product is high, the price of the product
is usually low.
Producers tend to gradually pull down the
prices when the supply is high, and adopt a
reverse mechanism when the supply is low.
Cost of making the product
• The term cost in this lesson simply refers to the
amount spent by the manufacturer in view of the
expected future benefits.
• Direct labor refers to the wages paid to the
workers who are directly involved in manufacturing
the product.
• Factory overhead includes indirect materials and
labor and other expenses like the cost of light, fuel
 Type of Product
• Products are broadly classified into industrial
products and consumer products.
• Industrial products are used as raw materials of
other manufacturing entities. These products
usually have higher prices compared to
consumer products.
• Consumer products are used and consumed by
individual consumers. These products may be
further classified into convenience product,
shopping product and highly priced product.
Presence of Substitute
Products
• The presence of substitute products is a
threat to the primary product.
• Substitute products basically set the limit to
the selling price of the primary product.
 Stages of the Product in the
Market
The product usually undergoes the
following stages:
1. Introductory stage
2. Growth stage
3. Maturity stage
4. Decline stage
• During introductory stage, the entrepreneur
may adopt the price skimming approach.
• The entrepreneur may also adopt the price
penetration approach in order to build a well-
founded consumer base.
• In the growth and maturity stages, the
entrepreneur may adopt the commonly used
pricing strategy which is the cost-based
model, in which the price is simply equal to the
cost plus the desired profit margin.
• In the decline stage, the product experiences a
Demographic Profile of the Target
Consumers
The demographic profile highly influences the
process of setting the most appropriate prices of
the goods or services.
Psychological pricing is categorized as follows:
1. Promotional pricing- where products are sold
at a lower price in a limited temporary
period like midnight sale, Christmas sale or
anniversary sale.
2. Odd or even pricing - where products sold at
prices that ends in odd number like 5 P99.95,
P199.95, or P399.95, appear cheaper compared
to products with prices that ends in even
number 0 like P100,P200, or 400
3. Prestige pricing - where products are
purposely sold at a higher price in order to
create a high or superior image like a skin
lotion at P700 whereas other similar products
 Assignment 4.1

You will answer a mini case study analysis of a department store. In this mini case
-you will review the efforts of the J.C. Penney department store to more efficiently
compete on price, primarily underpinned by a cost-cutting program.

• The can find this activity on your Google Classroom

• Submission Date will be on March 1,2021
 4th element:
PROMOTION
• The term promotion refers to the
mode of conveying the presence and
attributes of the product to the target
consumers.
• It creates awareness of the product in
the minds of consumers and elicits
their desire to buy it.
• Promotion utilizes the most appropriate
media to reach the consumers. These
include the following:
1. Advertising
2. Publicity
3. Personal selling
4. Sales promotion
 Advertising
• According to https://
www.diffen.com/difference/Advertisin
g_vs_Promotion
- Advertising is a one-way
communication whose purpose is to inform
potential customers about products and
services and how to obtain them.
• The most common medium in promoting a
product or service is through advertising in
the following forms:
1. Television
2. Print advertisements like those on
billboards, magazines, telephone
directories or newspapers
3. Online advertising
4. Packaging ads
 PUBLICITY
• According to William G. Stanton,
author fundamentals of
marketing - Publicity is any
promotional communication regarding
an organization and/or its products
where the message is not paid for by
the organization benefiting from it.
• Cash rewards as a means of
promoting the product helps the
business gaining the loyalty of the
customers.
• Gift certificates are an incentive to
the customers who have completed
the required accumulated amount of
 Direct Marketing
• According to https://
www.investopedia.com/terms/
d/direct-marketing.asp
- Direct marketing is a
promotional tool that relies on
direct communication or
distribution to individual
consumers, rather than through a
third party such as mass media.
• Promoting a product or service
through direct marketing is
undertaken through the Internet.
• Direct marketing is convenient
5th ELEMENT: PEOPLE
• The term people here refers to
individual employees or who
workers who are directly involved
in the production, marketing, and
sale of the product or service.
• Hence the entrepreneur must be
sure to hire the right person for
the position.
6TH ELEMENT: PACKAGING
• Packaging refers to the process of
putting the product in a package or
container. It includes the kind of
material used for the wrapper or
container and the label and product
information printed on the package.
• The basic purpose of packaging is to
protect the product from spillage,
damage or spoilage.
• The type of product basically
determines the kind of packaging
whether it will be plastic container,
breakable bottle, tin can, carton
box or paper or cellophane
 7TH ELEMENT:
POSITIONING
• Positioning refers to the place
occupied by the product in the
minds of the consumers.
• It is a marketing strategy that
defines the target consumers.
• It is the last marketing stage in
the customer identification
process.
• This position is actually a mixture
of the different attributes of the
Ps.
INTEGRATED MARKETING
MIX
• The different elements of the
marketing mix must blend
harmoniously in order to influence the
demands of the target consumers.
• Since the four or seven Ps are
considered marketer or seller
oriented, these must
Based on the customer be perspective,
oriented convertedtheto
become consumer
seven Ps may oriented.
be represented in a customer-
driven strategy as follows:
1. Customer satisfaction for product
2. Customer convenience for place
3. Customer cost lower
4. Customer information for promotion
5. Customer quality assurance for people
6. Customer safety for packaging
7. Customer decision for positioning