ENTREPRENEURSHIP

Name of Learner: Date:

_______________ Quarter 1- Week 7
IMPORTANCE OF MARKETING MIX IN THE DEVELOPMENT OF
MARKETING STRATEGIES
Background Information

It has been said that the success of marketing campaigns relies on the skills of
marketers in selecting the right marketing mix. The product should answer the
needs, wants and expectations of the customers. It should be priced reasonably
and be distributed at the right place. The sum of all of these, the product price, and
distribution should be properly communicated to the targeted audience.
In this lesson, developing the marketing strategies as well as its importance
will be elaborated to learn the importance of marketing mix which is essential in
developing strategies.
Marketing Mix
Marketing Mix or 4Ps concept is vital in designing a marketing strategy for a
brand. It has been told that marketing mix provides the companies for determining
the right products for the right markets. The Marketing mix has four (4) relevant
variables, which are the Product, Price, Place, and Promotion. It is important for the
marketer to have a mastery of controlling these variables because the success of
the marketing campaigns of companies is greatly relying on the smart planning of
the 4Ps.
THE PRODUCT: Developing Products and Services
Defining the benefits is the first thing that marketers should consider in
developing products and services. Through product attributes, the benefits are
being communicated and delivered to the customers. Attributes are seen through
product design and style, quality, and features.
Design and Style. To add value to the product, companies enhance the
design and style of the product. In this way, brands will be more distinct and look
special in the eyes of the buyer. Style pertains to the physical appearance of the
product. Style may catch or drop the attention of the buyer. So, it is very important
that marketers study the styling composition of their products to lure the market’s
attention. Design has a larger concept than style. The design is more than
attracting the attention through pleasant aesthetics of the brand. Some products
may seem attractive, however; it is not an assurance of a better performance.
Quality. One of the major considerations in positioning a product. Quality has
direct relationship with product performance. It is considered determinants of
customer value and satisfaction.
Features. Product features may help the company to attain competitive
advancement. Companies often introduce valued new features to create market
superiority. Example, many brands of instant noodles offer different features like
adding vitamins, new flavors, and user-friendly packaging. In this way, companies
may establish superior features compared to other brands.
Determining Product Life Cycle (PLC)
Marketers extend the life of the product strategizing the marketing mix. Marketers
may do the following strategies:
1. Marketing experts may use advertising and other promotional tools to
get new market or remind the current market on the product existence.
2. To attract customers, marketers may reduce the price of the product by
offering best deals or special discounts.
3. Companies may develop products by adding new value. Example, offering
new use, adding new features, or improving the specification.
4. Marketers may discover new markets by making the product launch new
geographical areas.
5. Redesign packaging that will show the new position of the product or
 rebrand the product.
THE PRICE: Applying New Product Pricing Strategies
The pricing strategy applied to a product may change depending on the stages
that it passes through in the product life cycle. The companies in this situation may
use one of the two broad strategies.
a. Market Skimming Pricing- This pricing strategy works by setting a high price for
the new product to skim maximum revenue from a set of consumers who are eager to
pay the high price.
b. Market Penetration Pricing- This pricing strategy suggests that to attract a large
number of consumers and to have a large number of market share, the company
should set the price low for new products.
THE PLACE: Exploring Distribution Channel
Distribution channel of marketing channel is a group of interdependent
organizations that participate in the process of making products or services available
for the consumption of the buyer or user. Business marketing channels have the
same design compared to consumer marketing channels. However, regarding the
involved intermediaries in the process, business marketing channels have different
players.

Realizing Integrated Supply Chain Managements (SCM)

Integrated supply chain management is one of the concepts in marketing that

needs to be appreciated by marketers. The supply chain is consisting of a network of
suppliers, manufacturers, warehouses, distribution centers, and retailers. The role of
this network is to acquire, process and deliver products to the customers.
SCM involves three levels in decision-making that allows supply chain
performance more efficient.
1. Strategic Level- defining the supply chain networks (identify the suppliers,
means of transportation, location, destination, facilities, warehouse)
 2. Tactical Level -Planning and scheduling of supply chain. The primary aim of
this level is to meet the actual demand.
3. Operational Level- Executing the plans
THE PROMOTION: Maximizing the Power of Integrated Marketing
Communication (IMC)

Marketing is huge and dynamic. It does not stop with the planning of the product
and producing it, making it affordable to prospective buyers. Promotion is all about
communicating the products to the consumer. It helps the company to establish and
maintain a strong and harmonious relationship with their customers. Traditionally,
promotional mix comprises of five basic marketing tools;
1. Advertising - any paid form of communication on goods, services, ideas,
individuals, or institutions through the use of media with the intent of the advertiser.
2. Sales promotion - a short-term tactic designed to attract and invite customers
to try and purchase the product.
3. Public relations - a management function designed to create and maintain
the strong and harmonious relationship between the organization and its public.
4. Personal selling - a face-to-face presentation to customers with the
intention of making sales and building relationships.
5. Direct selling - a direct communication to prospective and specific consumers
using mail, telephone, fax, email, and other non-personal tools to gain immediate
response.
Advertising

Direct Sales
marketing Promotional promotion
Mix
Promotional Mix
Or Marketing communication
Mix

Personal Public

Selling Relations

Strategizing Promotional Mix

There are two basic strategies that marketers can use in promoting their brands.
1. Push Strategy - Companies may use sales force and trade promotion in pushing
the product through the different channels. For example, the manufacturers will push
the product by promoting it to the wholesaler. The wholesaler will push the product to
the retailer. Moreover, the retailer will push the product to the consumers.
2. Pull Strategy - Marketers using this strategy heavily rely on the advertising and
consumers promotion to create consumer demand. The success of this strategy will
let the consumers demand the product to the retailers. The retailers will demand the
product to the wholesalers. Moreover, the wholesalers will demand the product to the
manufacturer.
Formulating Advertising Objectives

1. To inform - Most marketers use informative advertising if there purpose is to

introduce a new product or features and to establish major demand.
2. To persuade - the best use of persuasive advertising is when the company
decides to create selective demand for a product by influencing consumers to buy
the product because it offers the best quality at affordable price.
3. To compare - to highlight product superiority, some companies use comparative
advertising by comparing their brand to other competing brands in the market.
4. To remind - companies or products that have well-establishes position in the
market usually use reminder advertising where the purpose is just to remind the
consumers that their products still exist thus, “buy it”.
Learning Competency

 Recognize the importance of Marketing Mix in the Development of Marketing

Strategy

Code: (TLE_ICTAN11/12EM-1a-1)
Activity 1
Discuss briefly the comparison and/or contrast on the given words.
1. Market Skimming Pricing to Market Penetration Pricing

2. Personal selling to Direct selling

3. Tactical Level to Operational Level

4. Push Strategy to Pull Strategy

Activity 2

1. Create a sales promotion gimmick for the launching of a certain product (think of
your own product).
2. Complete the Table below and present your product in detail.
3. Product (Design and Style, Quality, Features), Price (Pricing Objectives, Pricing
strategy), Place (Distribution objectives, distribution channel),and Promotion (IMC
plan)

PRODUCT PRICE

PLACE PROMOTION
 Rubrics for the Activity
Criteria 5 4 3 2 1
1.The learner shows complete understanding of the topic.
2.The learner has complete response with a detailed
explanation .
3.The learner deliver his /her ideas correctly.
4. The learner shows creativity and uniqueness
Total
Grand Total /20
Activity 3
Guide Questions:

1. How do you i n t e r p r e t the Diagram on the Promotional Mix or Marketing

Communication Mix?

2. How important are design and style, quality and features of a product for marketing
strategy? Why?

3. How do we determine the right products for the right market? Explain your answer.
 Rubrics for the Activity
Criteria 5 4 3 2 1
1.The learner shows complete understanding of the topic.
2.The learner has complete response with a detailed
explanation .
3.The learner deliver his /her ideas correctly.
5. The learner shows creativity and uniqueness
Total
Grand Total /20

Reflection:
What I’ve learned:
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What I’ve enjoyed:

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What I’m still confused:

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REFERENCES

Aerola, et al, 2017, Entrepreneurship, JFS Publishing Services, Unit 9005 Central
Park Condominium, 168 D. Jorge Street, Pasay City, Philippines

Competency Based Learning Material (CBLM) in Entrepreneurship and Business

Planning, Strengthened Technical Vocational Education Program 2016
Answer key
Activity 1
1. Market Skimming Pricing works by setting a high price for the new product to skim
maximum revenue from a set of consumers who are eager to pay the high price while
Market Penetration Pricing suggests that to attract a large number of consumers and
to have a large number of market share, the company should set the price low for new
products.
2. Personal selling is a face-to-face presentation to customers with the intention of
making sales and building relationships while in Direct selling, it uses direct
communication to prospective and specific consumers using mail, telephone, fax,
email, and other non-personal tools to gain immediate response.
3. While Tactical level plan and schedule, Operational level used this to execute the
plan.
4. In Push Strategy, companies may use sales force and trade promotion in pushing
the product through the different channels while in Pull strategy,it heavily relies on the
advertising and consumers promotion to create consumer demand.
Activity 2 and 3

Answer may vary and evaluated using rubrics for assessment.

Prepared by:

LILLI ANN S. EMAAS

Master Teacher II