Delgado, Noemie L.

BSBA I-A

1st Assignment for Final

a. Identify and define the Marketing Mix and SIVA

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or
product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place.
Price: refers to the value that is put for a product. It depends on costs of production, segment targeted,
ability of the market to pay, supply - demand and a host of other direct and indirect factors. Product:
refers to the item actually being sold. Place: refers to the point of sale. In every industry, catching the
eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place'
strategy. Promotion: this refers to all the activities undertaken to make the product or service known to
the user and trade.The marketing mix needs a lot of understanding, market research and consultation
with several people, from users to trade to manufacturing and several others. While SIVA on the other
hand was a model that provides a demand/customer-centric alternative to the well-known four Ps
marketing mix model (product, price, placement, promotion) of marketing management. The idea
behind it is to restate the four P's in a way that reflects today's marketing environment where the power
of building brands has shifted from corporations to communities. On marketing mix we see that the 4ps
become somehow different but same meant on SIVA does this happened, product becomes solution,
promotion becomes the information, price to value as well as place on access. Or simply means that
(SIVA) Solution, Information,Value and Access.

Product becomes solution

Here, what is being sold is driven by what the consumer needs. The community defines the product
instead of the corporation. It is marketing's duty to understand what the consumer wants and explain
this to the corporations so that they, in turn, can produce the products that satisfy the needs of the
consumer. You aren't simply providing a product, you are offering a solution that meets your customer's
needs. This is what services do on a daily basis.

Promotion Becomes Information

Instead of placing ads, simply give the consumers the information they need to determine whether or
not the product or services offered is both valuable and accessible to them. Many services have always
operated on this basis. Customers go for a "fact finding" appointment where they learn about the
service offered (by a doctor or lawyer, for example) and its price. Based on this information, they decide
whether or not to become patients or clients.

Price Become Value

Instead of using economic theories to set price, S.I.V.A. advocates setting the price of a good or service
based on the value a product offers to the consumers. The price of services is often determined in this
manner as services are intangible products that can't be priced based on the input of raw materials.

Place Become Access

The whole idea behind this is giving consumers access to products and services when and where they
want it instead of dictating where a consumer has to go to get it. These days even beauticians are willing
to come to your home to do your hair. Other service providers provide information and services on the
Internet as opposed to making you come to their office.

b. Differentiate product from service

The main difference between Product and service is that product is an item produced by a company to
market and exchanged for money. And Service is provided by the business to the customer on demand.

c. Identify and understand the nature of price, elasticity and inelasticity

Nature of Price -is the value placed on what is exchanged. Something of value is exchanged for
satisfaction and utility, includes tangible (functional) and intangible (prestige) factors. Can be a
barter.Buyers must determine if the utility gained from the exchange is worth the buying power that
must be sacrificed. Price represents the value of a good/service among potential purchases and for
ensuring competition among sellers in an open market economy, whilst elastic is the quantity demand of
the product changes more than proportionally when its price increases or decreases. Conversely, on my
understanding inelastic occurs on the situation if the quantity demand of the product changes very little
when its price fluctuates.