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Name: Year/Strand/Section:
Teacher: Date:
Class Session/Hour:

Subject: Applied Entrepreneurship Reference: Module in Entrepreneurship

Topic: Business Plan Type of Activity: Concept Notes
1. 7P’s of Marketing Activity No: 9
a. Product
b. Price
c. Promotion
d. Place
e. Packaging
f. Positioning
g. People

Objective: at the end of the lesson the learner should able to:
1. Identify the 7P’s of Marketing
2. Apply the significant of 7P’s of Marketing in building a proposed business plan
3. Analyze the works of different 7P’s of Marketing as part of proposed business plan

Concept Notes:

7 P’S OF MARKETING

PRODUCT – the entrepreneur must develop the habit of looking at his product from the outside who brought
in to help the company decide whether it is in the right business at this time. The entrepreneur needs to develop
the habit of assessing his business honestly and regularly.

Product Profile
Product Name: Date Launch:
Product Number:
Short history of the product
****historical background of the product
Procedure of the product
****Step by step procedure of the propose product

PRICE – the entrepreneur should develop the habit of continually examining and re-examining the prices of
his/her product and services to make sure they’re still appropriate to the current market can conveniently
purchase. Sometimes the entrepreneur has to lower his prices. Apart from adjusting price, the entrepreneur may
need to change terms and conditions of sale. Also, by spreading price over series of months or years, the
entrepreneur can even sell far more than today, and the interest charge will more than make up for the delay in
cash receipt.
PRICING STRATEGIES - good pricing strategies helps the entrepreneur determine the price point at which
profits can maximized on sales of your products or services. When setting prices, a business owner needs to
consider a wide range of factors including production and distribution costs, competitor offering, positioning
strategies and business target customer base.

1. PRICING AT A PREMIUM - business set costs higher than to their competitors. It is often most
effective in the early days of a product life cycle and ideal for small business that unique goods.

2. PRICING FOR MARKET PENETRATION – aim to attract buyers by offering lower prices on the
goods and services. While many view companies use this technique o draw attention away from their
competition, penetration pricing does tend to result in an initial loss of income for the business.

3. ECONOMY PRICING – used by a wide range of businesses including generic food suppliers and
discount retailers, economy pricing aims to attract the most price-conscious of consumers. With this
strategy, businesses minimize the cost associated with marketing and production in order to keep prices
stable in the market.

4. PRICE SKIMMING – designed to help businesses maximize sales on new product and services; price
skimming involves rates high during introductory phase. The company lower the prices or they give
some freebies to the customers.

5. PSYCHOLOGY PRICING – with the economy still limping back to full health, price remains a major
concern for customers who’s pointing out the small amount that can save in buying a product. It also
refers to the technique of marketers to encourage customers to respond in wise manners as a consumer.

6. BUNDLE PRICING – small business sale multiple product for a lower rate than consumers would
face if they purchased each purchased each item individually. Not only is bundling is goods an effective
way of moving unsold items that are taking up space in your facility but it can also increase your value
perception in the eyes of your customers.

RAW MATERIALS OF THE PROPOSED PRODUCT

RAW SUPPLIERS ADDRESS PRICE OF THE RAW
MATERIALS MATERIALS
Loaf Bread SM Hypermarket SM Bicutan 40 pesos per pack
Taguig City
Tomato Sauce Grace’s Store MLQ St. Lower Bicutan 30.50 pesos per 250ml
Taguig City
Ham Taguig Market 37 pesos per 12pcs
Egg Rico’s Store Taguig City 144 pesos per 24pcs
Bacon 50 pesos per 4pcs
Paper Plate Bacood St. Sta. Mesa 20 pesos 24pcs
Stick RM Store Manila 5 pesos per 20pcs
Ketchup Lower Bicutan 85.50 pesos per 1 gallon
Mayonnaise Kat Villeza Store Taguig City 96.50 pesos per gallon
Cheese 48.50 pesos per 440grams
TOTAL AMOUNT OF RAW MATERIALS 558 pesos
 COSTING TEMPLATE
Product Name: Pizza Roll
Quantity Ingredients Equivalent Unit Price Price in Mixture
Measure
1 pc Loaf Bread 5 grams 40 pesos per pack 0.20 pesos
10 tbsp Tomato Sauce 15 ml 30.50 pesos per 250ml 1.83 pesos
1 pc Ham 30 grams 37 pesos per 12pcs 3.083 pesos
1 pc Egg 1 pc 144 pesos per 24pcs 6 pesos
1 pc Bacon 1 pc 50 pesos per 4pcs 12.50 pesos
1 pc Cheese 40 grams 48.50 pesos per 440grams 4.4090 pesos
10 tbsp Ketchup 15 ml 85.50 pesos per gallon 1.2825 pesos
10 tbsp Mayonnaise 15 ml 96.50 pesos per gallon 1.4475 pesos
1 pc Paper Plate 1 pc 20 pesos 24pcs 0.833 pesos
1 pc Stick 1 pc 5 pesos per 20pcs 0.25 pesos
Depreciation Cost 2 pesos
Utility Expenses 2.50 pesos
Total Recipe and Material Costs 36.335 pesos
Retail Price per Piece 42 pesos

PROMOTION - the third habit in marketing and sales is to think in terms of promotion all the time.
Promotion includes all the way informing customers about product and services about the products or
services and how it marketed and sold. Even small changes in advertising can immediately lead to
higher sales. Large and small companies in every industry continually experiment with different ways of
advertising, promoting and selling their products and services.

Different way of promoting a product and services

1. Free Taste
2. Billboard
3. Flyers
4. Brochures
5. Discount Coupon
6. T.V Commercial
7. Online Advertisement
8. Social Networking Page
9. Sponsorship
10. Product itself (Packaging)

PLACE – the fourth in the marketing mix, where the product or service is actually sold. The entrepreneur must
develop the habit of reviewing and reflecting upon the exact location where the customer the salesperson.
Sometimes a change in place can lead to a rapid increase in sale. Product can be in many different places and
different ways. Some companies use direct selling, sending their salespeople out to personally meet and talk
with the prospect. Some sell at trade shows or in retail establishment. Some sell in joint ventures with other
similar products or services.
PACKAGING – the fifth element in marketing mix, the entrepreneur must develop the habit of standing back
and looking at every visual element in the packaging of your product or service every visual element in the
packaging of your product or services through the eye of the critical prospect. Remember, people from their
first impression about someone within the first 30 second seeing that person or some element of the company is
presented. Packaging refers to the way the product or service appears from the outside. Packaging also refers to
the employees and how they dress and groom.

POSITIONING – the entrepreneur should develop the habit of thinking continually about how his business
positioned in the hearts and mind of the costumers. The entrepreneur should develop the habit of thinking about
how he/she could improve the positioning. Begin by determining the position that is desired to have.

PEOPLE – the final P of the marketing mix. The entrepreneur must develop the habit of thinking in terms of
the people inside and outside of the business who are responsible for every element of your sales, marketing
strategies and activities.

Exercise:
I. Answer the following questions.
1. What are the different pricing strategies?
2. How to make a pricing analysis in certain product?
3. How promotion affects the success of business?
4. What are the different ways of promoting a product and services
5. What is promotion?

II. Group Activity

Formulate the 7 P’s Marketing to your proposed business.