Unit 8: The Marketing Mix as a Business Strategy

Lesson 1: Product

Contents
Engage 1
Introduction 1
Objectives 1

Explore 2

Explain and Elaborate 3

The Marketing Mix 3
Product 4
Product Classifications 6
Stages in the Development of a Product 7

Extend 9
Activity 9

Evaluate 10

Wrap Up 12

Bibliography 13
Unit 8.1: Product

Engage

Introduction

Fig. 1. Product Development

The implementation of any business will not be complete without the corresponding
marketing approaches that should be performed by the entrepreneur. Developing an
effective marketing strategy would never be a piece of cake for any entrepreneur. This is the
reason why any business has to re-evaluate its activities from time to time.

Objectives
In this lesson, you should be able to do the following:
● Learn the concept and usage of the marketing mix in entrepreneurship.
● Acquire knowledge as to the different stages of product development.

DepEd Competencies
● Recognize the importance of marketing mix in the development of marketing
strategy. (CS_EP11/12ENTREP-0h-j-10)
● Describe the Marketing Mix (7Ps) in relation to the business opportunity vis-à- vis
product. (CS_EP11/12ENTREP-0h-j-10)

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Unit 8.1: Product

Explore

10 minutes
Guide Questions
Answer the following questions briefly and coherently:

1. Can you remember any impactful marketing concept by any business or brand? If so,
describe how it is done.

2. Have you ever purchased a product through any form of advertisement? Describe
your experience.

3. Do you prefer shopping online, or would you go to a store instead? Explain your
answer.

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Unit 8.1: Product

Explain and Elaborate

The Marketing Mix

Fig. 2. Marketing Strategy

A marketing mix is a special tool used in the implementation of any business, which is made
up of seven distinct but interconnected variables. These seven essential components help in
determining an effective marketing strategy to introduce a product or service to the market.

The Traditional 4Ps and New 7Ps

The original components of the marketing mix were four different yet interrelated variables.
Such a framework was used for marketing decision-making of any form of business. The
essential pillars of the traditional 4Ps are product, price, place, and promotion, which
were all used in gauging the businesses’ ability to exist in a competitive marketing
landscape. Each of the 4Ps is governed by several internal and external factors that help in
assessing any potential roadblocks that would lead to the falling of any form of business.

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Unit 8.1: Product

The Extended 7Ps

Fig. 3. The Extended 7Ps

In addressing the continuing concerns in the marketing industry, three other variables were
added towards the creation of the current 7Ps: people, packaging, and positioning. The
present marketing mix enables businesses to easily meet the needs and expectations of the
customers, most especially their target market.

Product
A product refers to any item that is produced to satisfy the needs and demands of a certain
group of people. It has a life cycle that revolves around its growth, maturity, and after-sales
performance.

Essential Questions
To avoid experiencing a sales decline in any product being offered, it is vital to incorporate a
marketing strategy that will stimulate the demand of the consumers towards the product
itself. In some cases, It may be a wiser decision to broaden the current product mix by
expanding the existing product line. In developing the right type of product for the target
market, the following questions must be addressed:

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Unit 8.1: Product
● What do the consumers want from the product?
● In what way will the consumers use the product?
● What additional features should the product have to address the needs of the
consumers?
● What should be the name or brand of the product?
● How does the product differ from the products of the other competitors?

Review
A product refers to any item that is produced to satisfy the needs and
demands of a certain group of people.

Unique Selling Proposition

A common denominator that is used in weighing several products is called the unique
selling proposition. This statement helps in improving the market position of a business
within the industry and allows it to stand out in the competitive market. A lot of products
these days have no clear competitive advantage in the market. With this kind of situation,
differentiation is a vital aspect that must be established by any business. This is where a
unique selling proposition plays an important role. It provides the ultimate advantage that a
product has to offer, the means of delivering on that advantage, and the commitment to
provide such an advantage to the consumers. It aims to answer the ultimate question -
“What makes the business different from its other competitors?”

Tip
When creating a unique selling proposition, a business must
primarily focus on the main factor that sets it apart from other
competitors.

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Unit 8.1: Product

Product Classifications
Products can be classified into three different categories:

Tangibles
Tangible products are those items that have actual physical presence. The benefits of these
products can be evaluated based on visual comparisons. One of the primary keys in
marketing tangible products is providing the consumers with the benefits they are looking
for. These people are not primarily concerned with the features of a product because they
are always after the benefits it provides. If a school supplies store is selling a ballpen with an
equipped eraser, such a feature will only become a benefit if a student is prone to making
corrections whenever he uses a ballpen.

Intangibles
Intangible products are those items that have no physical presence and can only be felt
indirectly. Under this classification are the virtual intangibles, which can be digitally found
and accessed by using a computer. Selling an intangible product would be harder than
selling a tangible one. The real challenge behind this is to be able to relate to the emotions
of the consumers since intangible selling is emotional selling.

Example
The following table presents various examples of tangible and intangible products:

Tangibles Intangibles

cash copyright

buildings trademark

equipment and machinery patent

computers and gadgets logo

furniture franchises

vehicles insurance

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Unit 8.1: Product

Stages in the Development of a Product

Fig. 3. Product Development

New product development tends to happen in various phases or cycles. But here are the
seven steps illustrative of developing a new product:

Strategy Development
Businesses often decide on effective strategies prior to the creation of a new product. Those
who already have investors would want to minimize the risks involved to avoid huge losses.
On the other hand, there are those businesses that must innovate or produce new products
frequently to prevent being surpassed by their competitors.

Generation of Ideas
The ideas or concepts in developing a new product may come from various sources and not
only from the upper management itself. Start-up ventures tend to lean on the information
gathered from market research that is generally focused on the demands of the consumers.

Screening and Evaluation

All ideas generated must go through proper evaluation wherein their feasibility is being
determined. There are also ideas that do not resonate well with the core objectives of the
business.

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Unit 8.1: Product
Business Analysis
During this phase, the ideas thrown in become subject to a more rigorous analysis. Other
factors, such as profit projections, risks involved, and consumer feedback, are likewise taken
into consideration. In this stage, the entrepreneur finds out whether the proposed product
is commercially profitable or not.

Product Development
It is during this stage that the product is introduced to the market. The production
department will be tasked to produce and deliver the product to various intermediaries, and
the marketing department will be tasked to take care of the branding of the product. In
every industry, however, it is required that the new product must adhere to the quality
standards set by the law.

Market Testing
Businesses adopt different approaches to testing the new product. In most situations, test
marketing involves the introduction of the new product to a small market. If such launching
were successful, then it would be introduced to larger market size. However, if the approach
conducted turned out to be a failure, then the business concerned will make new changes
or improvements in the product.

Commercialization
If the outcome of the previous test marketing were successful, the business would introduce
the product to a larger market, either locally or internationally. This is the phase where
advertising or marketing tactics would play an essential role. Mass media advertising may be
implemented, and digital marketing may likewise be performed as another advertorial
resort.

Can you think of other major sources of business

ideas or concepts?

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Unit 8.1: Product

Extend
Activity
Think of a product that start-up businesses offer. In the table provided below, list down the
different businesses or companies that currently provide such products. Under the second
column, state and describe the designs, specifications, and additional features that you can
incorporate into a new product to surpass the present competition.

Proposed product: ____________________________________________

List of Competitors Designs, Specifications, and Added Features

Guide
● List down as many competitors as you can think of. These businesses or companies
can either be local or international.
● Elaborate on the designs, specifications, and additional features that you would like
to incorporate, which will enable you to compete with the existing businesses.

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Unit 8.1: Product

Evaluate

A. Answer the following questions briefly and coherently:

1. What is the concept of marketing mix?

2. How would you define a “unique selling proposition”?

3. What is the relevance of the marketing mix in entrepreneurship?

4. What is the importance of market testing in product development?

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5. What can you infer from the concept of “product” in entrepreneurship?

B. Read the situation below and answer the subsequent

questions.

An entrepreneur tried to develop a product that is already

existing in the market. He introduced the product to small
market size, and the consumer response was not good.

1. What do you think is the reason behind the failure of his product launch?

2. Should the entrepreneur continue to introduce his newly-developed product to a

larger market size? Why or why not?

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Unit 8.1: Product
3. Do you agree with the entrepreneur’s plan of introducing his product to the market?
Why or why not?

4. How should an existing product be re-introduced to the market?

5. What could have been done in order to prevent such circumstances from happening?

Wrap Up
___________________________________________________________________________________________

● A marketing mix is a special tool used in the implementation of any business, which
is made up of seven distinct but interconnected variables.
● A product refers to any item that is produced to satisfy the needs and demands of a
certain group of people.

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Unit 8.1: Product

___________________________________________________________________________________________

Bibliography
Dollingner, Marc. Entrepreneurship: Strategies and Resources 3rd Edition. New Jersey: Prentice
Hall, 2003.

Kotler, Philip & Gordon McDougall. Marketing Essentials. Prentice-Hall Canada Inc., 1985.

Kuratko, Donald. Entrepreneurship: Theory, Process, and Practice. Taguig: Cengage, 2017.

Singh, Ricky. “What Are the 7Ps of Marketing.” Medium, October 5, 2018. Accessed on April
12, 2020.
https://medium.com/the-startup-growth/what-are-the-7ps-of-marketing-ad2572f7eb
16.

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