THE MARKETING MIX

THE 7Ps OF
MARKETING
GUESS THE WORD
 _______
any phisical good, service o idea created by the
entrepreneur.

P O L U

K M R D

C A T E

3
 PRODUCT
any phisical good, service o idea created by the
entrepreneur.

P O L U

K M R D

C A T E

4
 _____
refers to a location or medium of transactions.

P G L U

W M N D

C A T E

5
 PLACE
refers to a location or medium of transactions.

P G L U

W M N D

C A T E

6
 _____
peso value that the entrepreneur assigns to a
certain product.

P R H B

O I W D

C A T E

7
 PRICE
peso value that the entrepreneur assigns to a
certain product.

P R H B

O I W D

C A T E

8
THE 7Ps of MARKETING
The marketing mix is a widely
accepted startegic marketing tool
that combines the original 4Ps
(PRODUCT, PLACE, PRICE,
PROMOTION) with the additional
3Ps--- PEOPLE, PACKAGING and
PROCESS, in formulating marketing
tactics for products and services.

10
- the 7Ps are controllable by the entreprenuer and
therefore must be well thought of to be
successful.

- 4Ps were used in marketing products or physical

good only.

- 3Ps are also applicable for marketing products

Entrepreneurs must use the 7Ps model to do
the following:
▸ 1. Conduct a SWOT or competitive
analysis.
▸ 2. Ultimately come up with marketing
strategies and tactics.
A challenge to a budding entrepreneur is to ask the following
key questions at the onset:
1. PRODUCT- What product or service is the most
appropriate for the opportunity and why will customers
buy or avail them?

2. PLACE- What location is best suited for the buisness

where there are more potential customers?

3. PRICE- What is the most appropriate price and what

pricicng strategies will be used for the target customers?
A challenge to a budding entrepreneur is to ask the following
key questions at the onset:
4. PROMOTION- What is the most effective
advertisement or combination of advertisements?

5. PEOPLE- What type of people need to be hired?

What are the basic skills need for the job?

6. PACKAGING- What is the best packaging for the

product that is attractive enough for the customers and
cost-effecient at the same time?

7. PROCESSING- What is the most compelling feature

of thje product that will make a difference in the lives of
the consumers?
PRODUCT
PRODUCT
A product is any physical good,
service or idea that is created
by an entrepreneur or
innovator in serving needs of
the consumers and addressing
their existing problems.
 Product Defined
Products – are tangible objects that a company sells to
customers for their use or consumption.
Example of products include the goods bought in
Supermarket such as fruits, vegetables. Also, it includes
equipment such as machines and raw materials such as
textiles and metals.
Services – are also sold by a company to a set
of consumers. However, unlike products,
services tend to be intangible; they are
directly delivered to the customers by a
company’s employees.

* services and products all contribute to

the consumer’s overall experience with
a company. When a company delivers
high quality services and products, it
will likely ensure a favorable experience
for the customer.
THE THREE-LEVEL CONCEPT of
PRODUCTS OR SERVICES
SUMMARIZES THE REASONS THAT A
CONSUMER DECIDES TO BUY A
PRODUCT OR AVAIL A SERVICE.
LEVEL 1: CORE BENEFITS OF THE PRODUCT OR
SERVICE
LEVEL 2: PHYSICAL CHARACTERISTICS OF THE
PRODUCT OR SERVICE
LEVEL 3: AUGMENTED BENEFITS OF A PRODUCT OR
SERVICE
Levels of a Product
- in discussing the meaning of product, it is
important to understand its level. These levels correspond to the
different components of a product. (core, actual, and augmented)
a. Core product - this level refers to the benefit
that a consumer can gain from using a
product. It can thus be considered the main
reason for purchasing a product.
Example: a laptop is a portable computer or device that can be used for
the office needs and
communication. This will be the main benefit of
using a laptop, and, thus, will be the main motivation for a customer to
purchase one.
Core Product:

Bulbs are of various forms and brightness levels

The brightness generated by the bulb X
 the ease of communication.
being able to communicate with speed and
efficiency
 8 GIG RAM X
Actual Product – this corresponds to the tangible
characteristics of the product, including its features and
packaging.

Augmented Product - this level refers to the service-

based add-ons that customers are entitled to upon
purchasing the product.
Example:

Customers who purchase laptops are entitled to a

warranty provision; free
operating system that comes with the
product; and in some cases a replacement period for
the laptop’s parts.
Product or service or brand Core Product Actual Product Augmented Product

Ford Focus Freedom to travel A motor car Ford finance

Spanish Holiday Relaxation Two weeks in a resort Holiday insurance

Budget/No Frills Airline e.g. Gets you from destination A Food bought during your
An airline journey
EasyJet or Ryanair – to B cheaply flight

Somewhere to rest when Clean bed bathroom, clean Free drinking water,
Hotel far from home sheets, free wi-fi toiletries, breakfast

Association with the best in Nike online allows you to

Nike Shoes and other clothing
sports personalize your trainers
 New Product Development
- Is the process that involves CONCEPTUALIZATION
CREATION of innovative products that will catch the attention of
customers.
There are 7 stages in the process of developing a new product:

1. IDEA GENERATION
 searches for and surveys new ideas to be used in developing
a product.
 this can involve the company’s sales and executive teams to
generate ideas based on the current market research
2. IDEA SCREENING
 the stage when the ideas generated by the company
are carefully scrutinized to retain only those ideas
which have potentials and eliminate those which may
fail.

3. CONCEPT DEVELOPMENT AND SCREENING

 once idea for a new product is selected, it now further
developed as a concept
 it is assumed that the product has hypothetically high
chance of succeeding
 the concept is expanded and tested; feedback serves as basis for
enhancing the concept for the product
4.MARKET AND BUSINESS PLANNING
 planning on how the product will be marketed
 target market is identified and characterized
 profit objectives are planned
 other components of the 4P’s are identified –
price, placement, promotion of the product
 sales projections are made, as well as the costs and
profit estimates from the product

5. Product Development
 the concept is developed into a product prototype
 Sometimes, it may take months or years to create a
product prototype and ensure that it will pass both
technical and commercial standards
6. TEST MARKETING

 once prototype is developed, its marketability is tested

with a particular group of customers in a specific
location
 reactions of customers towards the products are then
gathered and analyzed, which will help address any
problem concerning the marketability of the product
before it is officially introduced to potential customers
7. COMMERCIALIZATION
 making final decision on launching
 commercialization can be a soft launch or full scale
launch
 soft launch - product will be tested with a limited
number of customers. It is not only the marketability
that is being tested but also the usability and
features of the product. This often involve one or
two components of the 4P’s in the marketing mix.
Sometimes this also involves price discounts and
lower-budget promotion scheme like use of flyers
and brochures.
 After the soft launch, responses are again recorded and analyzed
 full-scale launch

 serves as the official launching of the product

 involves the extensive utilization of the components of the 4P’s
 the product is sold at its official price, and is marketed heavily
through various means like posters, TV and radio ads
The Product Life Cycle

•The product lifecycle looks at the sales of a

product over time

34
 PRODUCT LIFE CYCLE
 Is defined as the period of time that a product is
introduced, sold, and eventually removed from
the market.

 The product life cycle is composed of four stages:

1. introduction
2. growth
3. maturity
4. decline
 Introduction
 Product is launch in the market
 Companies spend great amount of money to
develop and introduce their products to
customers
 Marketers are expected to find ways to
launch products in the best way possible,
without incurring large costs
 GROWTH
 Product gains acceptance in the market
 Profits of the firm or company start to increase
 Point when a product may be sold under
different brands. These brands attempt to
make their own, distinct version of the
product being sold.
 Marketers and companies are now being
challenge to maintain high sales and ensure
the loyalty of their customers.
 MATURITY
 At this stage, the product has been in the market for a long
time and competition has increased
 Marketers face a new challenge for a possible decline in the
sales of the product
 Marketers would now try to address the challenge through
improving the features of the product or even cutting down
its price
 DECLINE
 Stage when the profits and sales for the product continue to
decrease
 Consumers may begin to favor a new product which will
eventually prevail in the market
 At this point, the companies and firms may be left with no
choice but to ultimately drop the product, in order to avoid
incurring huge costs and low profits.

Product Life Cycle.mp4

Product Life cycle - Stages of PLC explained with examples.mp4
P L A C E
PLACE
The place refers to a location or
the medium of transaction. A
strategic location depends on
the nature of the business and
the primary target market.
PHYSICAL CYBER LOCATION
LOCATION
1. area's population 1. use web analytics
2. the traffic data to understand
3. people's common the web site
path performance
4. buying behavior (number of web
5. their preferences visitors, duration of
for the location their stay on the web
site, or frequently
visited contents)
• Place also covers the product
distribution and the whole business
logistics
• One of the major objectives of the
entreprenuer for the place is to provide
customers with pleasant experience in
buying the product.
• The entreprenuer must devise a set of criteria in choosing
the right location aligned with certain objectives such as
sustainability to the target market, condition of
neighborhood, potential of the area for future
developments, laws and regulations, etc.
Place (Distribution)
Channels
Coverage
Locations
Inventory
Transport
Logistics
–Place (Distribution)
The product must be available in the
right place,
at the right time and
in the right quantity
while keeping storage, inventory and
distribution costs to an acceptable level.
The place where customers buy a product,
and the means of distributing your product
to that place, must be appropriate and
convenient for the customer
 Example of place
Convenience store with extended opening hours and in a
convenient location, stocking a limited range of
household goods and groceries.
 Example of place
Show window an outside display window in which
a store exhibits merchandise. : a sample or setting
used to exhibit or illustrate something at its best.
 Place
also means ways of
displaying your product
to customer groups. This
could be in a shop
window, but it could also
be online
 E-commerce
operations that sell
exclusively on the
internet must place even
more emphasis on the
company website and
other online activities, as
there are fewer points
where the customer will
interact
–with the company.
PRICE
PRICE
Price is the peso value that the
entrepreneur assigns to a certain
product or service after
considering the costs, competition,
objectives, positioning and target
market. It is the onluy P that
genereates revenue for the
business.
HERE ARE THE MOST COMMON
PRICING STRATEGIES.
1. BUNDLING- This refers to two or more products or services
in one reduced price.
2. PENETRATION PRICES- this refers to setting low prices to
increase market shares, but the entreprenuer will eventually
increase the price once the desired market share is achieved.
3. SKIMMING- this is the opposite of penetration, where prices
are initially high and then they are lowered to offer the
product or service to wider market.
4. COMPETITIVE PRICING- this refers to benchmarking
prices with the competitors.
HERE ARE THE MOST COMMON
PRICING STRATEGIES.
5. PRODUCT LINE PRICING- this refers to pricing different
products and services within a parallel product array using varrying
prices points.
6. PSYCHOLOGICAL PRICING- this considers the psychology nad
positioning of price in the market.
7. PREMIUM PRICING- this refers to setting a very high price to
reflect elitism and superiority.
8. OPTIONAL PRICING- this refers to adding an extra product or
service on top of original to generate more revenue.
9. COST-BASED PRICING- the basis of markup is the cost of sales.
10. COST PLUS PRICING- the markup is based on the certain
percentage of the cost.
• The profit of an entrepreneur can be
determined onlu if there is a proper
computation of the costs associated with
the product or service. There are two
classifications of cost:

1. VARIABE COSTS OR CONTROLLABLE COST

2. FIXED COSSTS OR UNCONTROLLABLE COST
THE ENTREPRENUER MUST FOLLOW THESE
GENERAL PRICING GUIDELINES TO MAKE THE
BUSINESS SUSTAINABLE AND THRIVING:

1. Do not price the product or service below its cost.

2. Monitor the competitors' prices and ensure that your
prices are at par with them unless the product or service is
really way superior to the competitors'.
3. Align the prices with the other 6Ps.
4. Implement price strategies that are releveant to your
market segment. For example, tingi pricing is more
appropriate in grassroots of locality or barangay.
5. Align prices with your business objective.
PROMOTION
PROMOTION
Promotion involves presenting
the products or services to the
public and how these can
address the public's needs,
wants, problems and
desires.The main goal of
promotion is to get attention.
• A strong integrated marketing
communication plan should be devised
to deiver the compelling messages
effectively.
• Key marketing messages for promotion can
be the following:
1. Value proposition or unique selling proposition of products
2. Product or service image
3. Business Image
4. Business values and philosophy
 PROMOTIONAL TOOLS:
1. ADVERTISING
• This is a type of communication that influences the behavior
of the customer to choose the product or service of the
entrepreneur over competitors.
• The objectives of advertising are:
• Informing, educating and familarizing public with
the product
• Building trustworthy image
• Increasing sales
• An entrepreneur can advertise through: television, radio,
internet, mobile phones, print, out-of-home.
 PROMOTIONAL TOOLS:
2. SELLING
• This is the act of trading of a prduct of service for a price or
fee.
• The entrepreneur must identify the target customers who will
likely buy the product.
• Once identified, he or she must do further research on target
customers.
• The entrepreneur must also know how to close a sale by
leaving a convincing conclusion that will trigger the customer
purchase.
• After such, he or she must monitor the customers' satisfaction,
called AFTER SALES.
 PROMOTIONAL TOOLS:
3. SALES PROMOTIONS
• These are short term gimmicks wherein practical incentives and appealing
activities are incorporated to entice the customers to buy.
• These are also called “below-the-line” promotions.
• Here are common examples of sales promotions in the philippines.
• Sales discounts
• raffles
• contests and games
• promo items
• trade fairs or exhibits
• sample distributions / free tastes
• premiums
• point-of-purchase promitions
• advertising specialties
• rewards
 PROMOTIONAL TOOLS:
4. PUBLIC RELATIONS
• These are image-building initiatives of the entrepreneur to
make the name of the business reputable to stakeholders, such
as the target customers, government agencies, business
partners, media and the public.
• Unlike advertisement, this do not directly promote.
• Examples of public relations strategies are:
• Press conference
• Launching events
• Strong media relations
• Social responsibility events
• Lobbying
• Web public relations
PEOPLE
PEOPLE
How people or employees make a
difference in the lives of
consumers. It's not about the
quality of the product anymore
but how employees serve
customers. Employees have
become a major influence in the
customer's buying behavior.
PEOPLE
Most of the legwork at the
beginning is done by the
entrepreneur and his family.
They only hire people when the
business starts to expand.
PEOPLE
The entrepreneur must list the
criteria of the following job offers,
as well as the requirements such as
academic background, job
experience, skills or expertise,
attitude and other documents such
as police and NBI clearance.
What is Recruitment?
TYPES OF RECRUITMENT

INTERNAL EXTERNAL
Vacant posts are New employees are
filled by the existing hired from outside the
employees through company through
promotion, transfer employment agencies,
educational institutes,
and employee
advertisement, etc.
referral.
Job Descriptions and Job Specification

•Job Description –
A written summary of the essential duties
required by a specific job.
• Aids in personnel recruitment.
• Helps focus employees on their work.
• Provides direction in training.
Job Descriptions and Job Specification

Job Specification -
A list of the skills and abilities needed by
the job holder to successfully perform a
specific job
• Aids in selecting the most qualified job
applicant.
SAMPLE
SAMPLE
Sources of Employees
––1.
1. Help-Wanted
Help-Wanted ––4.
4. Job
Job fairs
fairs ––7.
7. Online
Online Sources
Sources
Advertisements
Advertisements

––2.
2. Private
Private ––5.
5. Professional
Professional ––8.
8. Temporary
Temporary
Employment
Employment organizations
organizations help
help services
services
Agencies
Agencies

––6.
6. Walk-ins
Walk-ins
––3.
3. Schools,
Schools, colleges,
colleges, ––9.
9. Independent
Independent
(Unsolicited
(Unsolicited
and
and universities
universities contractors
contractors
applicants)
applicants)
Recruiting Sources
1. ADVERTISEMENTS:

 When an organization wishes to communicate to the public

that it has a vacancy, advertisement is one of the most
popular methods used.
 The most common techniques that are used as ad.
• Newspapers (local and specific labor markets)
• Marketing programs
• Radio & Television
Recruiting Sources
–2. Employment Agencies:

–Types of employment agencies:

Public agencies operated by federal, state, or

local government
private employment agencies
management consulting firms
Recruiting Sources
–3. Schools, colleges, and universities:
 Educational institutions at all levels offer opportunities
for recruiting recent graduates.

 Most educational institutions operate placement

services where prospective employers can review
credentials and interview graduates.
Recruiting Sources
4. Job fairs:

Attended by company recruiters seeking resumes and info

from qualified candidates

Virtual online job fairs could bring employers and job

seekers together online by logging into a specific Web
site at a certain time. Some sites use avatars as
candidates and recruiters.
Recruiting Sources
–5. Professional organizations:

Many professional organizations, including labor unions,

operate placement services for the benefit of their
members.
The professional organizations include such varied
occupations as industrial engineering, psychology,
accounting, legal, and academics.
These organizations publish rosters of job vacancies
and distribute these lists to members.
Recruiting Sources

6. Walk-ins (Unsolicited applicants):

• Unsolicited applications, whether they reach the

employer by letter, telephone, or in person,
constitute a source of prospective applicants.
• Direct applicants who seek employment with or
without encouragement from other sources.
Recruiting Sources
–Online
–7
–sources
.
 It is one of the newer arenas for locating resumes of qualified employees
is looking on the Internet.
 Most companies use the Internet to recruit employees.
 Job seekers use online resumes and create Web pages about their
qualifications.
Recruiting Sources
8. Temporary help Agencies/Services:

A temporary work agency, temp agency or

temporary staffing firm finds and retains
workers. Other companies, in need of short-
term workers, contract with the temporary work
agency to send temporary workers, or temps, on
assignments to work at the other companies.
Recruiting Sources
9. Independent contractors:

 Do specific work either on or off the

company’s premises
 An independent contractor is a natural person,
business, or corporation that provides goods or
services to another entity under terms specified
in a contract or within a verbal agreement.
PACKAGING
PACKAGING
Packaging is how the product or
service is presented to the
customers. It is the overall
identification (look and feel) of the
product and services. This will
determine the uniqueness of your
product from competitors.
Meaning of Packaging
Packaging refers to the act of designing and
producing the container or wrapper of a product.
It is one of the most important parts of marketing. As
clothing is for humans, packaging is for products.
• This is the first element that the
customers see because they don't know
what's inside yet.
• Packaging also preserves shelf life of the product or
services.
• It's main goal is to entice customers to buy the product.
This must be pleasing to the eyes of the buyers.

• In selling services, the term servicescape was used to refer

to overall ambiance of place where service is performed.
 g i n g
a c k a
o f p
v e l s
L e
1. Primary packaging
It refers to the product’s immediate container.
Eg: Toothpaste, chocolate, medicines etc
2. secondary packaging

It refers to the additional layer of protection that

are kept till the product are ready to use.
Eg: A toothpaste tube comes in a cardboard box.
3.Transportation packaging
It refers to the further packaging necessary for storage or
transportation. It may contains a number of products
within a cardboard box for easy transportation.
 o n s o f
Func ti
a gi ng
p a ck
Some of the functions of packaging are
:
1. Protection
2. Product promotion
3. Product attraction
4. Easy identification
5. Product differentiation
6. Convenience
7. Prevent from adulteration
 1. Protection of the product

Packaging protects the contents of a product

from spoilage, breakage, leakage, damage,
climatic effects etc.
 2. Product promotion
Packaging is used for promoting purposes.
An attractive color, photograph or typephase
etc can promote the products.
3. Product Attraction
Different colors, images etc can attract
the consumers towards the product.
 4. Easy identification

Packaging greatly helps in

identification of product.
Eg: A medimix soap can be easily
identified by its cover.
It give the product unique identity.
5. Product Differentiation
Through packages a product can be easily
differentiated with each other products in the
market. It ensures the individuality of the
products.
6. Convenience
The size and shape of the package should be
such that it should be convenient to open
handler and use consumer.
7. Prevent from adulteration
Packaging helps to prevent
adding of unnecessary
contents into the product or
it protect from corruption of
product especially food
items, cosmetics etc
PROCESS
PROCESS
It is defined as a step by step
procedure or activity work flow
that the entrepreneur and
employees follow to effectively and
efficiently the customers.
Its components include INPUT,
THROUGHOUT and OUTPUT.
PROCESS
The internal process includes the
back-office operations (preprocessing,
processing and postprocessing)
wherein employees or machines
process customers' request without
necessarily being seen.
The external process includes the
actual servicing where customers are
part of the process.
THANK YOU!