GRADE 12

ENTREPRENEURSHIP
Lesson 3
Importance of Marketing Mix in the
Development of Marketing Strategy

.
Marketing Mix
The goal is to develop and implement a marketing strategy that
combines the four (4) elements. The product, price, place, and
promotion (four 4Ps) it is used to market and develop a product
that meets the needs of the target market.

Product - A product is something that can be marketed to

customers because it provides them with a benefit and satisfies a
need. Products can be goods or services or a combination of
both.
Price - Setting a price for the product involves a certain amount of
trial and error because there are so many factors to consider. If
your price is too high, a lot of people would simply won’t buy your
product. if your price is too low, you might not make enough profit
to stay in business.
Product Pricing Strategies
1. Skimming Approach— this is used by the company to their new
product. It is a product pricing strategy by which a business charges the
highest initial price that customers will pay and then lowers it over time.
2. Penetration Approach - It is used by businesses to attract customers to a
new product or service by offering a lower price during its initial offering.
3. Cost-based pricing- company determines the cost of making a product
and then sets a price by adding a profit to the cost.
4. Demand-based pricing- marketers set the price that they think
consumers will pay.
5. Prestige pricing - Setting prices at a high level, with no
discounting. By doing so, the seller is indicating the impression of
high quality.
6. Odd-even pricing- psychological pricing tactic in which the
companies set prices at such figures as ₱9.99 (an odd amount),
because it sounds cheaper than ₱10 (an even amount).
Place- It refers to the strategies for distribution. Companies
must decide how they will distribute their products. If they
will sell directly to customers, wholesaler or retailer who
helps move products from their original source to the end
user.
Channels of Distribution
1. Consumers – a person who purchases goods and
services for personal use.
2. Wholesaler -a person or company that sells goods in
large quantities at low prices.
3. Retailer- a person or business that sells goods to the
public in relatively small quantities for use or
consumption rather than for resale.
Promotion – there are different ways to communicate
with customers. These are all tools for telling people
about your product:
1. Advertising -This is a non-personal communication
designed to create awareness of a product or company.
2. Personal - is one-on-one communication with existing
and potential customers.
3. Publicity - involves getting the name of the company
or its products mentioned in print or broadcast media.
Selling product at social media which is the most
widely used.
4. Sales promotions - provide potential customers with
direct incentives to buy.
People - are responsible for every element of your sales, marketing
strategies, and activities. You must 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.

Human Resource Management - do the hiring process of consists of

all the actions that an organization takes to attract, develop, and
retain quality employees. After analyzing the jobs that must be
performed, the HR manager forecasts future hiring needs and begins.
Recruitment– It is the process to identify suitable candidates and
encourage them to apply. It involves activities related to the
development of a applicants for jobs in the organization.
Selection- It is the process, reviewing information provided by
candidates on employment. It also determines the decisions on
who will be hired from the created recruitment task.
 Steps in Hiring Process Step
Step1 Step2 Step3
Determine the need Recruitment, Making a decision
of job position to be screening selection whom to hire
filled in the and interview of among all the
organization. applicant applicants
Packaging - It is the way your product or service
appears from the outside. Packaging and
labels can be used by marketers to encourage
potential buyers to purchase the product.
The Objectives of Packaging
1. To Provide Physical Protection - Ensures that they are
protected against temperature,
shock, compression, deterioration in quality.
2. To Enable Marketing - Good packing along with
attractive labelling are used by sellers
to promote the products to potential buyers. The shape,
size, color, appearance etc. are
designed to attract the attention of potential buyers.
3. To Convey Message - Contains information
relating to the raw materials used, the type
of manufacturing process, usage instructions, use by
date etc. are all very important.

4. To Provide Convenience - The convenience in

handling, display, opening, distribution,
transportation, storage, sale, use, reuse and disposal.

5. To Provide Containment -Small objects are

typically put together in one package for
reasons of efficiency and economy.
6. To Enable Product Identification- Packaging enable a
product to have its own identity. This is done by designing a
unique and distinct package through the effective use of
colors, shapes, graphics etc.
7. To Enhance Profits - Since consumers are willing to pay a
higher price for packaged goods, there will be higher profit
realization. Moreover packaged goods reduce the cost of
handling, transportation, distribution etc. and also cut
down wastage and thereby increase profits.
8. To Enhance Brand Image- Attractive packing and
packaging in a consistent manner over a long time
enhances the brand image of the product.
 Positioning
It is the place that a brand or your product occupies in the
minds of the customers and how it is well known from the
products of the competitors and different from the
concept of brand awareness. It is part of the broader
marketing strategy which includes three basic decision
levels, known as the S-T-P approach:
Segmentation
It refers to the process of dividing a broad consumer
or business market, normally consisting of existing
and potential customers, into sub-groups of
consumers
 Targeting
It refers to the selection of a segment or
segments that will become the focus of
special attention known as target markets.

Positioning
also refers to an overall strategy that "aims to
make a brand occupy a distinct position,
relative to competing brands, in the mind of
the customer"
Directions: Match the definitions in column A with its
elements in column B. Write your answer in the space
provided.
A B
1. It is the way to communicate A. Place
to customers. B. Pricing
2. It is strategies for distribution. C. Product
3. The way your product appears D. Packaging
from the outside E. Promotion
4. Setting of an amount for the product.
5. It is something that can be marketed
to customers.
Directions: Fill in the blanks to complete the
statement below. Choose your
Marketing Strategy Marketing Mix Product Promotion Target Market

The goal of __________________ is to develop and

implement a ____________________that combines the
four (4) elements. The _____________, place, pricing
and _____________. It is used to market and develop
a product that meets the needs of
the_______________.