ENTREPRENEURSHIP

Introduction to Entrepreneurship
7Ps of Marketing Mix

Name: _____________________________ Quarter 3 Week 7-9

Section: _____________________________ Date: __________________

Background Information for Learners

At this stage of your entrepreneurial journey, you have already learned the following
entrepreneurial activities:
1. Identification of the target market segment of the proposed business.
2. Evaluation of the factors influencing the behavior of consumers.
3. Conduct of research work and gathering of sufficient and relevant data
4. Preliminary conclusion on the type of buying behavior exhibited by the target consumers

Your entrepreneurial work, however, does not simply end there. You must design a
particular marketing program or strategy that will deliver the value of your product to the
target of consumers. In the parlance of entrepreneurship, this program is technically called
the marketing mix.

The marketing mix simply refers to a mode, means, or tool used by the entrepreneur to
position the product in the target market segment to efficiently and effectively deliver it to the
consumers and convince them about the benefits that they will derived from buying the product.
The marketing mix is also known as the “Ps” in marketing. Originally, there were only 4Ps, but
the model has been continuously modified until there became 7Ps. The original 4Ps stand for
product, place, price and promotion. Eventually, three elements have been added, namely,
people, packaging and positioning to comprise the 7Ps.

The marketing mix basically addresses the following questions:

1. How can the target consumers be influenced to buy 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?

Why Is Marketing Mix Important?

When thinking of a business development plan, marketing mix is an important model to help you
create the right marketing strategy. This model is a useful guide for a company to implement
effective tactics to gain the most profit.

The marketing mix model is actually one of the first things an organization should consider when
starting a business. The reason for this is because all the company’s decisions on positioning,
targeting, and segmentation will depend on this model.

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How Do I Make a Marketing Mix?

There are three things you should remember when planning how to market a product:

 Target market
 Goals and budget
 Tactics

 Know your target market

Decide on who you want to sell your product or service to and write a quick audience profile.
For example, male and female students, aged 18 to 25. You can also determine what other
factors matter, such as income and location. Who your market is will determine what tactics you
should employ in your marketing mix. The model adjusts according to who you’re selling to.

 Know your goals and budget

Outline what you want to happen. For example, you can note your desired sales quota for the
year, and how many leads you need in order to get that. The more tangible, the better.

 Employ the right tactics

The marketing tactics you will use in your marketing mix will depend on your target market and
your goals. For example, if your goal is to sell 100 notebooks to university students by the end of
the month, you can think up a promo to lower the price to attract students. You can also change
the place to be more accessible to your customers.

How Can Marketing Mix Help a Business?

 Product development — Designing a marketing mix involves a lot of market research.

In developing this model, you can better develop pricing and promotion strategies to
improve your product. Every time you develop your product, this model can guide your
decisions.
 Boosting your business — With this model at the center of your business strategy, you
can thoroughly analyze your product and think up of ways to stand out from your
competitors, and to deliver better customer experiences.

The market today is ever-changing and sometimes difficult to predict. By developing a

marketing mix, guided by the 7P’s of marketing, you can ensure the quality of your products and
forecast the best ways to improve your products in the future. This model can help you analyze
your business so you can keep up with whatever change the future brings.

The marketing mix is a significant tool for creating the right marketing strategy and its
implementation through effective tactics. The assessment of the roles of your product,
promotion, price, and place plays a vital part in your overall marketing approach. The mix helps
in determining which marketing strategy is right for your organization. It is the first step before
you even create your business or marketing plan. The reason is that your marketing mix
decisions also have an impact on your positioning, targeting, and segmentation decisions.

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 You can make the targeting and segmentation decisions based on your products while
positioning can be decided on the basis of your price. These decisions also have an impact on the
decision you make regarding the promotion and price. Therefore, the marketing mix strategy
goes hand in hand with positioning, targeting, and segmentation. All the elements, included in
the marketing mix and the extended marketing mix, have an interaction with one another. If you
have a service or a product, then you will have to decide on a price in order to sell it.

What is the 7 p’s marketing mix used for?

These 7 Ps are predominantly used by businesses as a focal point and as part of an overall
marketing strategy.

They can assist with:

 Defining areas of success in the business that can be replicated and built on
 Defining issues in the business that are holding you back from being more profitable,
productive or successful
 Setting objectives and targets – so you can move strategically towards your goals
 Competitive analysis – your business position in the market against your competitors
 SWOT analysis – analysis of your business strengths, weaknesses, opportunities and
threats

The 7Ps of Marketing

1. Product

The product is the foundation of any business. How your product satisfies the demand of
your target market will determine how many customers you get and how much profit you’ll
gain.

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 Your product must cater to the right market, and respond to its demands. Here are some
questions you can ask to develop your product:

 What does the customer want from my product or service?

 Does my product or service satisfy their basic needs?
 Which features should I develop in order to meet the needs of my customer?
 Am I including costly features that my customers don’t use?
 What is the life cycle of my product?
 How will my customers use the product? Where will they use it?
 Are there any challenges or problems that may arise when the product is delivered to
the customer? What can I do to prevent these problems?
 How is my product different from that of my competitors?
 How should I brand and market my product? What should it look like?

For many a product is simply the tangible, physical item that we buy or sell. You can also
think of the product as intangible i.e. a service.
In order to actively explore the nature of a product further, let’s consider it as three
different products – the CORE product, the ACTUAL product, and finally the
AUGMENTED product.
The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed
is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down
roots as it becomes an adult (maturity); after a long period as an adult the plant begins to
shrink and die out (decline).
The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle
(PLC). However, CLC focuses upon the creation and delivery of lifetime value to the
customer i.e. looks at the products or services that customers NEED throughout their lives.

The key to developing a product is to make sure there’s a sufficiently large target
audience. If there’s no one to buy your product, then there’s no point in making it. So market
research is a must beforehand. The most successful companies discover what customers want
first. And then develop the products to meet the customer needs. In today’s world the first ‘P’
includes services too, but when the Marketing Mix was first devised, it was targeted at
products only. With product (or service), the company must focus on quality (but this doesn’t
always mean top quality, it depends on the target audience the product is destine for). Also
look at features and variants of the product or service, customer service to back up your
product or service, warranties and guarantees, branding and image.

2. Place
Place refers to where a product or service is sold. It is the actual distribution center. The
place matters because where you sell your product will determine what kind of market you
attract and how many people you can turn into customers.

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 Place is also known as channel, distribution, or intermediary. It is the mechanism through
which goods and/or services are moved from the manufacturer/ service provider to the user
or consumer.

Here are some questions you can ask yourself when thinking about where you should sell
your product or service:

 Where do customers usually go when looking for my product or service?

 What kind of store is most effective? Boutique? Supermarket? Online? Catalog?
Direct selling?
 How can I access the right distribution channels?
 Do I need to use a salesforce? Attend trade fairs? Send samples?
 What do my competitors do? How can I differentiate?
We’ve all heard the expression ‘being in the right place at the right time.’ Marketing
Mix is the same. Your business needs to be where your customers expect it to be. This
applies to physical locations as well as an online store or website.
You must advertise or make your product available in the right place. This might be
having your shop on the high street, for example, and this is all about location, location,
location. It is also important to have the right quantities available, as running out of stock
on an order is never good for business.
Customers want convenience and with the Internet, speed is key. Customers want
things now and at the cheapest price. Place can be applied to placing your advert in the
right place. Choosing the right advertising medium is key. It needs to be where your
customers flock to. The key is finding out where this is.

3. Price
A product or service is only worth what someone (which in this case is a customer), is
willing to pay for it. However, being the cheapest is not always the way to go.
The company’s goal in terms of price is really to reduce costs through improving
manufacturing and efficiency, and most importantly the marketer needs to increase the
perceived value of the benefits of its products and services to the buyer or consumer. There
are many ways to price a product. Let’s have a look at some of them and try to understand
the best policy/strategy in various
situations.

When setting the price of your product, you must consider three things:

 Product Development — How much it costs for the company to make the product?
 Perceived Value — How your customers would perceive the value of the product?
 Profit — How much profit you would like to get?

Here are some guide questions your company can use to help you set the price of your
product or service:

 Who are my customers? Are they price-sensitive?

 What is the value of my product or service to my customers?
 Are there established price points for the product or service?
 How does my price compare with my competitors?

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 What discounts can I offer my customers?

With price you need to be aware of the competition, but this is not simply about the price
level of competitors – see Marketing Mix 7Ps Example below. You can out-compete on
service to justify a higher price. You can compete on a better service, better value added or
simply better value for money.

When you price-up your products or services, you need to build-in a suitable profit within
this price. If you’re looking at increasing prices of your products, review what number of
customers you could lose as a result of the price increase.

Example – Competing on price gives you nowhere else to go, when your
competitors reduce their prices too.

The price of your products or service positions you in the market place in relation to your
competitors. So for example, if you price high, like Rolls Royce cars, you are going for
expensive, quality and snob value. Customers are happy to pay more, but in exchange for a
higher price, they expect a better product or service for their money.

The company image for expensive products, in the example of Rolls Royce, should be
consistent, from letterheads right through to the quality of the leather used on the seats.
Whereas with ‘value products’, as for example supermarket value brands, the packaging is
cheap and the product quality is less than perfect. But this ‘low-quality’ level is acceptable to
the customers concerned. They are happy to pay a lower price for this ‘low-quality.’

4. Promotion
Promotion includes all of the tools available to the marketer for marketing
communication. Promotion is an art. Promotion encompasses a whole range of activities,
which includes advertising, PR, testimonials, special offers and discounts, exhibitions, Pay
Per Click (PPC), social media, customer service and more.
Good promotion is about communicating the benefits of your products or services and
not simply focusing on the features. Ask the questions ‘What’s in it for me?’ from the
customer’s perspective.
It’s highly probable that the first-time experience of customers with companies is via
their website. Also, with the ever increasing in the use of mobiles, your website needs to be
mobile friendly, as well as clearly laid out. Always consider looking at other advertising
avenues. Are you using all of the social media channels for example? Have you tried
traditional print, as this still remains popular. Headlines and images are key to grabbing
customer attention. The advert content must follow on from a great headline. Focus on the
benefits of your product or service.

Promotion refers to all activities involved in making your product or service known.
These include:

a. Advertising
b. Sales promotion
c. Public relations

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 d. TV commercials
e. Internet ads
f. Print media
g. Billboards
h. Ad features on public transport
i. Press release
j. Events

How you promote and market your product depends on who your target market is and
what message you want to get across. Know the best time to promote by learning about your
market and product, and knowing how your competitors promote.

5. People
This pertains to all employees involved in the manufacturing and distribution of the
product or service. This looks at how these people perform their jobs in order to deliver the
highest quality or products or services possible.
Business owners should always think of everyone they come into contact with as a
potential customer. So ensure that each time your business comes into contact
with ANY person, make sure it’s always a great experience. People talk to other people.
People love to complain, so if they’ve had a bad experience with your business, be it as a
customer or not, they’ll more than likely tell someone about it.
Choosing the right people also applies to your staff. Make sure your staff, especially
those who are in direct contact with customers, leave a good impression with customers. But
please re-read the above paragraph, as even staff who do not interact with customers, must be
aware of what effect they can have on anyone they make contact with.
In the age of social media this is especially true. Previously, a customer would share a
bad experience with 7-10 people (much more than a great experience). However, with social
media, if a bad experience is shared, this could be shared with hundreds, if not thousands of
people. Having great people in your business will ensure a great customer experience and
will lead to referrals and testimonials.
It's amazing how many entrepreneurs and business people will work extremely hard to
think through every element of the marketing strategy and the marketing mix, and then pay
little attention to the fact that every single decision and policy has to be carried out by a
specific person, in a specific way. Your ability to select, recruit, hire and retain the proper
people, with the skills and abilities to do the job you need to have done, is more important
than everything else put together.

6. Packaging
Packaging refers to the process of putting the product n 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. Spilled, damaged or a spoiled products create
impressions that are disadvantageous to the product or business. The type of product
basically determines the kind of packaging whether it will be plastic container, breakable
bottle, tin can, carton or box, or paper or cellophane wrapper.
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 Consumable liquid products are usually placed in plastic containers, breakable bottles,
and cartons or boxes.

The packaging of a product must be user friendly, that is, it must be easy to open, handle, and
store. It can be re-sealable and reusable. It can also be environment friendly. The label
printed on the packaging material must be attractive, readable, and complete with the
necessary product information.

Develop the habit of standing back and looking at every visual element in the packaging
of your product or service through the eyes of a critical prospect. Remember, people form
their first impression about you within the first 30 seconds of seeing you or some element of
your company. Small improvements in the packaging or external appearance of your product
or service can often lead to completely different reactions from your customers.

With regard to the packaging of your company, your product or service, you should think
in terms of everything that the customer sees from the first moment of contact with your
company all the way through the purchasing process.

Packaging refers to the way your product or service appears from the outside. Packaging
also refers to your people and how they dress and groom. It refers to your offices, your
waiting rooms, your brochures, your correspondence and every single visual element about
your company. Everything counts. Everything helps or hurts. Everything affects your
customer's confidence about dealing with you.

7. Positioning
Positioning, as an additional element in the modified model of the marketing mix,
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.
The entrepreneur must always define the product from the perspective of a
customer-driven position. This position is actually a mixture of the different attribute of
the Ps. For example, in relation to the product image, there must be a quality product that
satisfies the needs or wants of consumers.

 You should develop the habit of thinking continually about how you are positioned in the
hearts and minds of your customers.
o How do people think and talk about you when you're not present?
o How do people think and talk about your company?
o What positioning do you have in your market, in terms of the specific words
people use when they describe you and your offerings to others?
 Develop the habit of thinking about how you could improve your positioning.
o Begin by determining the position you'd like to have. If you could create the ideal
impression in the hearts and minds of your customers, what would it be?
o What would you have to do in every customer interaction to get your customers to
think and talk about in that specific way?
o What changes do you need to make in the way interact with customers today in
order to be seen as the very best choice for your customers of tomorrow?

Integrated Marketing Mix

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 The different categories or Ps of the marketing mix are not usually applied separately or
independently in positioning the product or service in the minds of the consumers. Rather, the
different elements of the marketing mix bland harmoniously in order to influence the demands of
the target consumers. Since the 7Ps are considered marketer- or seller-oriented, these must be
converted to become consumer-oriented.
Based on the customer-oriented perspective, the 7Ps may be represented in a customer-driven
strategy as follows:
1. Customer satisfaction for product
2. Customer convenience for place
3. Customer cost lowered
4. Customer information for promotion
5. Customer quality assurance for people
6. Customer safety for packaging
7. Customer decision for positioning
The seven Ps of the marketing program must be supported by a tool that will complement
other tools of the marketing mix. This makes the marketing mix integrated.

Develop a Brand name

Branding is one of the most important aspects of any business. An effective brand
strategy gives you a major edge in increasingly competitive markets. But what exactly does
"branding" mean? How does it affect a small business like yours?

Simply put, your brand is your promise to your customer. It tells them what they can
expect from your products and services, and it differentiates your offering from your
competitors'. Your brand is derived from who you are, who you want to be and who people
perceive you to be.

Are you the innovative in your industry? Or the experienced, reliable one? Is your
product the high-cost, high-quality option, or the low-cost, high-value option? You can't be both,
and you can't be all things to all people. Who you are should be based to some extent on who
your target customers want and need you to be.

The foundation of your brand is your logo. Your website, packaging and promotional
materials--all of which should integrate your logo - communicate your brand.

Brand Strategy & Equity

Your brand strategy is how, what, where, when and to whom you plan on communicating
and delivering on your brand messages. Where you advertise is part of your brand strategy. Your
distribution channels are also part of your brand strategy. And what you communicate visually
and verbally are part of your brand strategy, too.

Consistent, strategic branding leads to a strong brand equity, which means the added
value brought to your company's products or services that allows you to charge more for your
brand than what identical, unbranded products command. The most obvious example of this is
Coke vs. a generic soda. Because Coca-Cola has built a powerful brand equity, it can charge
more for its product--and customers will pay that higher price.

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 The added value intrinsic to brand equity frequently comes in the form of perceived
quality or emotional attachment. For example, Nike associates its products with star athletes,
hoping customers will transfer their emotional attachment from the athlete to the product. For
Nike, it's not just the shoe's features that sell the shoe.

Defining Your Brand

Defining your brand is like a journey of business self-discovery. It can be difficult, time-
consuming and uncomfortable. It requires, at the very least, that you answer the questions below:

 What is your company's mission?

 What are the benefits and features of your products or services?
 What do your customers and prospects already think of your company?
 What qualities do you want them to associate with your company?

Do your research. Learn the needs, habits and desires of your current and prospective customers.
And don't rely on what you think they think. Know what they think.

Because defining your brand and developing a brand strategy can be complex, consider
leveraging the expertise of a nonprofit small-business advisory group or a Small Business
Development Center .

Once you've defined your brand, how do you get the word out? Here are a few simple, time-
tested tips:

a. Get a great logo. Your Logo must be original and be creative, this will represent your
business everywhere.
b. Write down your brand messaging. What are the key messages you want to
communicate about your brand? Every employee should be aware of your brand
attributes.
c. Integrate your brand. Branding extends to every aspect of your business--how you
answer your phones, what you or your salespeople wear on sales calls, your e-mail
signature, everything.
d. Create a "voice" for your company that reflects your brand. This voice should be
applied to all written communication and incorporated in the visual imagery of all
materials, online and off. Is your brand friendly? Be conversational. Is it ritzy? Be more
formal. You get the gist.
e. Develop a tagline. Write a memorable, meaningful and concise statement that captures
the essence of your brand.
f. Design templates and create brand standards for your marketing materials. Use the
same color scheme, logo placement, look and feel throughout. You don't need to be
fancy, just consistent.
g. Be true to your brand. Customers won't return to you--or refer you to someone else--if
you don't deliver on your brand promise.
h. Be consistent. I placed this point last only because it involves all of the above and is the
most important tip I can give you. If you can't do this, your attempts at establishing a
brand will fail.

BUSINESS PLAN OUTLINE

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 The following is an outline of the business plan.
A. Title Page
B. Table of Contents
C. List of Tables
D. List of Figures
E. List of Appendices
F. Introduction
G. Executive Summary
H. Environmental Analysis
I. Business Description
J. Organizational Plan
K. Production Plan
L. Operation Plan
M. Marketing Plan
N. Financial Plan
O. Appendix

Learning Competencies:
 Recognize the importance of marketing mix in the development of marketing strategy
 Describe the Marketing Mix (7Ps) in relation to the business opportunity (7Ps: Product,
Place, Price, Promotion, People, Packaging, and Positioning)
 Develop a brand name
Code: (TLE_ICTAN11/12EM-Ia-1)

Activity 1. TRUE or FALSE.

Read and analyze the competencies in Entrepreneurship below. Select TRUE if the statement is correct
and write FALSE if otherwise. Write your answer before the number.
1. Your product must cater to the right market, and respond to its demands.
2. Marketing Mix is a Marketing tool designed to identify the target market.
3. Prestige pricing is intended for consumers who belong to the higher social status.
4. Providing a trade or cash discounts to consumers is a promotional tool used in public relations or
publicity.
5. In direct marketing, the sales force goes to offices and homes to sell the product.
6. The entrepreneur must focus mainly on the quality of the packaging materials used.
7. Your Logo must be original and be creative, this will represent your business
everywhere.
8. Branding is one of the most important aspects of any business. An effective brand
strategy gives you a major edge in increasingly competitive markets.
9. There are two things you should remember when planning how to market a product,
target market and tactics.
10. The product is the foundation of any business. How your product satisfies the demand of
your target market will determine how many customers you get and how much profit
you’ll gain
11. Place refers to where a product or service is sold.
12. Positioning includes all of the tools available to the marketer for marketing
communication.
13. People pertains to all employees involved in the manufacturing and distribution of the
product or service.

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 14. Promotion 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.
15. Positioning refers to the place occupied by the product in the minds of the consumers

Activity 2:
Multiple Choice: Read and analyze each statement carefully then choose the letter of the best answer on a
separate sheet of paper.
1. The following are three things you should remember when planning how to market a
product, EXCEPT.
a. Target Market
b. Goals and Budget
c. Tactics
d. Logo
2. This 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.
a. Product
b. Packaging
c. Promotion
d. Positioning
3. It is one of the most important aspects of any business. An effective brand strategy gives
you a major edge in increasingly competitive markets.
a. Branding
b. Sales
c. Vouchers
d. Discounts
4. This pertains to all employees involved in the manufacturing and distribution of the
product or services.
a. Manager
b. Production worker
c. Owner
d. People
5. The basic purpose of packaging is to ________ the product from spillage, damage, or
spoilage.
a. Preserved
b. Protect
c. Store
d. None of the above

6. With this model at the center of your business strategy, you can thoroughly analyze your
product and think up of ways to stand out from your competitors, and to deliver better
customer experiences
a. Positioning
b. Boosting your business
c. Product development
d. Promotion
7. It can be re-sealable and reusable.
a. Product
b. Packaging
c. Promotion
d. Positioning

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8. This must be original and be creative, this will represent your business everywhere. This
should also be patented.
a. Branding
b. Product
c. Promotion
d. Logo

9. Promotion refers to all activities involved in making your product or service known, these
includes?
a. Billboards
b. Events
c. Public Relations
d. All of the above

10. It is also known as channel, distribution, or intermediary. It is the mechanism through

which goods and/or services are moved from the manufacturer/ service provider to the
user or consumer.
a. People
b. Product
c. Place
d. Promotion

11. Designing a marketing mix involves a lot of market research. In developing this model,
you can better develop pricing and promotion strategies to improve your product.
a. Product development
b. Personal Development
c. Branding
d. Packaging
12. Which of the following is one of the original Ps of Marketing mix, 4Ps?
a. Positioning
b. Packaging
c. Product
d. People

13. The following are the original 4Ps of the marketing mix, EXCEPT?
a. Place
b. Price
c. Positioning
d. Promotion
14. Refers to the way your product or service appears from the outside.
a. Place
b. Packaging
c. Price
d. Product
15. In order to actively explore the nature of a product further, consider it as three different
products, EXCEPT?
a. Core Product
b. Actual Product
c. Augmented Product
d. Bundle product

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References:
1. What is Marketing Mix, https://www.thebalancesmb.com/what-is-a-marketing-mix-
2295520#:~:text=Identifying%20and%20arranging%20the%20elements,and%20adaptable%20in
%20its%20market
2. Importance of Marketing Mix, https://promotionaldrives.com/blog/marketing-mix-faq/
3. Importance of Marketing Mix in your Marketing Strategy – Part 1, Warren A. Hill,
https://www.linkedin.com/pulse/importance-marketing-mix-your-strategy-part-1-warren-a-hill
4. https://marketingsquare.co.uk/7-ps-marketing-mix-how-to-use-them-in-your-small-business/
5. https://www.in-business.org.uk/marketing-mix-7ps-example-marketing-mix-7ps-pdf/#2_P1_-
_Product
6. The 7Ps of Marketing, Brian Tacy., https://www.entrepreneur.com/article/70824
7. Category: Marketing 4Ps and 7Ps, http://www.marketingteacher.com/marketing-mix-4ps-and-
7ps/
8. https://promotionaldrives.com/blog/marketing-mix-faq/#marketing
9. Entrepreneurship in the Philippine setting for SHS, Nick L. Aduana, C&E Publishing,Quazon
City Philippines
10. Entrepreneurship – First Edition, Dr. Eduardo A. Morato Jr., Rex Bookstore

Answer Key:
Activity 1. True or False
1. True
2. True
3. True
4. False
5. True
6. False
7. True
8. True
9. False
10. True
11. True
12. False
13. True
14. False
15. True

Activity 2. Multiple Choice

1. D
2. B
3. A
4. D
5. B
6. B
7. B
8. D
9. D
10. C
11. A
12. C
13. C
14. B
15. D

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Prepared by:

Charmaine Joemaica J. Sapigao

Teacher I

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