• He describes marketers as „Mixers
Lesson 1 of Ingredients‟
MARKETING
MIX
MARKETING MIX
• the marketing mix refers to the set of
actions, or tactics, that a company
uses to promote its brand or product
in the market.
• It is defined as set of marketing tools
that the firm uses to pursue its
marketing objective in the target
market.
• It is a foundation concept in marketing.
• Also known as the four (4) P‟s broad
levels of marketing decision namely
Product, Price, Place and Promotion.
• In services marketing, a modified and
expanded marketing mix is used,
typically comprising seven P’s made up
of the original 4 P’s plus process,
people, physical environment/evidence
Emergence of the
Marketing Mix the 4ps
and 7ps Concept
1. Professor JAMES CULLITON
(1948)
• He is a professor of Marketing at
Harvard University.
• He published an article entitled: The
Management of Marketing Costs.
2. Professor NEIL BORDEN (1948)
• It He wrote a retrospective article
giving the details of the early history
of the 4Ps.
• He credits himself with popularizing
the term “Marketing Mix”.
• He consistently used the term from
the late 1940s
3. E. JEROME McCARTHY (1960)
• the 4Ps in its modern form was
proposed in his textbook entitled:
Basic Marketing: A Managerial
Approach.
• He used the 4Ps as an organizing
framework for the entire work.
• It has been widely adopted.
4. PHILIP KOTLER
• he popularized the managerial
approach and with it, spread the
concept of 4Ps.
• Service marketers were thinking
about the revision of the general
marketing mix.
• Services were fundamentally
different from products.
5. BOOMS and BITNER (1981)
• Modifying the marketing mix
happened in the early 1980s.
• Proposed the model of the 7Ps.
• It is comprised of the original 4Ps
plus Process, People, and Physical
Evidence
ELEMENTS OF MARKETING
MIX (7 Ps)
1. PRODUCT
• Modifying Refers to what the
business offers for sale and may
include products (goods) or services.
 • A product is anything that can be c. Status Quo
offered for satisfaction • The firm seeks to
Strategies for Mature Products avoid reasonable
1. Develop new uses or functions and government actions,
new purposes for products. minimize the effects
2. Develop new or add latest product of competitor
features. actions, and maintain
3. Find new classes of consumers or the good channel
new potential markets for present relations. The goal of
products. the company is to
4. Find new classes of consumers maintain good image
for modified products. to the community by
5. Increase product use for new creating projects/
product users. programs that
6. Change marketing policies or protects its welfare
strategy and goodwill.
PRODUCT STRATEGIES 2. Broad Price Policy
o provides procedures, rules, and
1. Breadth Strategy methods to act in one specific
▪ is reaching multiple situation
segments with a single a. Penetration pricing
product. • uses low prices to
2. depth Strategy capture/attract the
▪ is serving one segment with market the
multiple products larger/mass market
3. Tailored Strategy for a product or
▪ is customizing products for service.
each segment. b. Skimming pricing
• uses high prices to
2. PRICE attract the market
• Refers to the total cost for segment more
customer to acquire the product. concerned with
• It may involve both monetary and product quality,
psychological costs such as the time uniqueness, or status
and effort extended in acquisition than price.
FIVE STEPS IN DEVELOPING A 3. PRICE STRATEGIES
PRICING STRATEGY o are ways or some actions to
1. OBJECTIVE accomplish the goals and
o may be: sales-based, profit-based, objectives of the company in
and status-quo based. gaining profit.
a. Sales Based a. Sales Based Cost
• The firm is interested • based price strategy
in sales growth. It is
b. Profit Based when the firm sets
• The firm is interested prices by computing
in maximum profit. merchandise, services
 and overheads costs power of the
then adding desired customer.
profit to those e. Odd pricing
figures. • are prices set at
b. Demand-based price levels below even
strategy values.
• It is when the firm f. Price-quality association
sets prices after • is when the customers
researching consumer believed that high
desires and make price represents high
sure the range of quality and low prices
prices is acceptable represent low
to the target market. qualities.
c. Competition - based price g. Prestige pricing
strategy • is when customers set
• It is when the firm price floors and will
sets prices in relation not buy at prices
to the below those floors.
competitors. h. Leader pricing
4. IMPLEMENTING PRICE STRATEGY • is selling key items at
o is the firm readiness to sell the low prices to gain
product which would be effective consumer loyalty
if the given an attractive price within its product
strategy listed below: line.
a. Customary pricing i. Multiple-unit pricing
• is when one price is • is when the
maintained over an entrepreneur offers
extended period of discounts to
time. consumers for buying
b. Variable pricing in large quantities.
• is when the price j. Price lining
responds to costs • is when instead of
fluctuations or setting one price for
differences in a single model of a
demand. good or service, the
c. One-price policy firm sells two models
• is when the price is of different quality
charge to all and features at
customers buying the different prices.
product or service k. Price bundling
under similar • is when the firm
conditions. offers a basic
d. Flexible pricing product, options, and
• is based on customer service for
customer’s ability to one total price.
negotiate or buy l. unbundled pricing
 • is when the firm sells additional charges
by individual added to the total
components and prices.
allows customer to d. Mark-Ups
decide what to buy. • It is when the
m. Geographic pricing company is raising
• is when the prices are regular selling prices
set depending on the because demand is
distance of the buyer unexpectedly high, or
to the seller costs are raising.
n. TERMS OF PAYMENTS e. Markdowns
• These are the price • These are the
agreements, including reductions from
discounts, timing of original prices to
payments and credits meet lower prices of
agreements. competitors and
discounts: overstocking.
o Paying in cash 3. PLACE
o Performing • This is the place where your
certain customers buy your product and how
functions you make it available to them to view
o Buying large and evaluate it.
quantity • It is defined as the “direct or
o Off-season indirect channels to market,
buying geographical distribution, territorial
5. PRICE ADJUSTMENTS coverage, retail outlet, market
o This refers in changes in cost, location, catalogues, inventory,
competitive conditions and demand logistics and order fulfillment.
require changes in price • Place refers to either Physical
a. List Prices These location or Virtual Stores.
• are regularly quoted 1. Direct channel distribution
prices to customers, o is the transfer or movement of
as in catalogs, price goods and services from
tags and purchase manufacturer to final user or
orders. customer without the intervention
b. Escalator Clauses of independent middlemen.
• This happens when the
2. indirect channel distribution
contract which allows o is the transfer or movement of
price increase after goods and tangible products and
the sale is concluded services or intangible goods from
before the delivery is manufacturer or producer to
made. independent intermediaries.
c. Surcharge
• It is the INTENSITY OF CHANNEL COVERAGE
supplementary to list 1. Exclusive Distribution
prices. These are
 o is the limited number of 4. Sales Promotion
middlemen used in geographic o involves paid marketing
area. communication activities that
2. Selective Distribution stimulate consumer purchases and
o is organizing a moderate number dealer effective.
of wholesalers or retailers. 5. PEOPLE
3. Intensive Distribution • It can be considered as product by
o is organizing a large number of providing satisfaction to the
middlemen that are used to obtain consumer. Business can improve their
widespread market coverage and ability to attract, retain and improve
channel acceptance. the productivity by applying the five-
4. PROMOTION step PRIDE process.
• Refers to “the marketing Letter P
communication used to make the • Provide a Pleasant Working
offer known to potential customers Environment
and persuade them to investigate it Letter R
further”. • Recognize, Reward and Reinforce the
• Promotion elements include Good Behavior
“advertising, public relations, direct
selling and sales promotions. Letter I
• Involve and Participate in the
Promotional Mix activities and programs
• is a combination of the strategies to
accomplish the promotion objectives Letter D
of an organization. These are the • Develop skills and Attitude
following: Letter e
1. Advertising • Evaluate and Measure Performance
o is a paid, non-personal 6. PROCESS
communication regarding goods, • It refers to a set of activities that
services, organizations, people, results in delivery of the product
places, and ideas that is benefits.
transmitted through various • could be a sequential order of tasks
media. that an employee undertakes as a
2. Publicity part of their job.
o is a non-personal communication
regarding goods, services,
7. PHYSICAL EVIDENCE
• The lasting proof that the service has
organizations, people, places, and
ideas that is transmitted through happened, in terms of buying a
various media but not paid for by physical product, the physical
an identified sponsor. evidence is the product itself.
• It is important to customers because
3. Personal selling the tangible goods are evidence that
o involves oral communications with
the seller has (or has not) provided
one or more prospective buyers what the customer was expecting
by paid representatives for the
purpose of making sales.
 Lesson 2
4Ms OF
OPERATION
the 4m’s of operation
1. MANPOWER REQUIREMENTS
• Manpower, personnel or laborer should
be listed accordingly, from the
managerial position, supervisory position
to the staff or workforce needed in the
operation of the business
Qualification Standards
o Three kinds of Qualification
standard of choosing newly hired
employee
Manpower
o This refers to the personality
required to a worker’s traits
manners, values, the way he talks,
appearance and his overall
physical attributes.
Experience
o This refers to the length of
working experience in relation to
the job criteria required as a
worker, and also that a worker
applied for.
Academics
o This refers to the worker’s
academic qualifications or the
educational attainment required
to perform the job letter
Important notes:
1. It is important to identify the key people who
will manage the business.
2. The owner and management team should have
good track record to help the company grow
can be successful.
3. A resume should be attached in the business
plan.
RESUME
o A resume is a one- to two-page
formal document submitted to job
recruiters as means of showing a
list of an applicant's work
experience, education and skills.
o A resume should be attached in
the business plan that includes the
following information:
1. Name
2. Position (include brief position
description along with primary
duties)
3. Primary responsibilities and
authority
4. Education (highest attainment)
5. Unique experience and skills
6. Prior job employment
7. Special skills
8. Past track record
9. Industry recognition and
awards
10. Community involvement/
participation
11. Number of years with the
company
12. Compensation basis and levels
13. Quantify achiever
Steps in coming up with the
criteria for selecting applicants
1. List down all the different activities
that have to be done in the business.
Group this according to the four
functional areas of management
(4) FOUR FUNCTIONAL AREAS OF
MANAGEMENT
MARKETING
▪ This department is
responsible for promoting
the business to generate
sales and help the company
to grow
1. Sale and Delivery of
Products to buyers.
 2. Delivery of products 3. Keeping and
to buyers. Maintenance of
3. Promotion and Personnel Records.
Advertising 4. Business
PRODUCTION Communication and
▪ This department is Inquiries.
concerned in manufacturing 2. In the list of activities, it should
the products, where the exclude the list that will be taken by
inputs (raw materials) are the owners. The tasks should be
converted into finished translated into job designations or
product through a series of position titles.
production process 3. List the entire qualification
1. Product manufacture requirement for every position in
or service delivery terms of education, experience,
2. Machine operation training, etc.
3. Repair and 2. METHOD
Maintenance. • represents the day-to-day operations of
4. Quality Control a business
5. Raw materials and
Finished Products Manufacturing
o is the process of converting raw
FINANCE materials into finished product.
▪ They are responsible for
o The sequence of operations should
accounting, auditing,
be clearly defined to ensure
planning, and organizing the
proper execution thus assuring
company’s finances
the consistency of the quality of
1. Bookkeeping
the product.
2. Payroll preparation
3. Settlement of Production Schedule
payables and o Timetable for the use of
collection of resources and process required by
receivables. a business to produce goods or
4. Petty cash services.
managements plant size production schedules
ADMINISTRATION o determined based on the projected
▪ It is the backbone of the demand.
business. They are assigned Forecasting
to handle the business, o A planning tool that helps
planning, decision-making management in its attempts to
and also financial review. cope with the uncertainty of the
1. Ordering of Supplies. future.
2. Sales Contract 3. MACHINE
preparation and • After the plant size was determined, the
Business permits machinery and equipment required can
renewals. be identified
• It is an apparatus using or applying
mechanical power and having detailed
 specifications should be prepared
including its function and the number of
units required.
i. The origin of machine whether
local or imported and the country
of origin should be known.
ii. The specification of a
manufactured product normally
include the general and technical
descriptions.
General Description
o It states the basic description of
the product and services.
Technical Description
o It includes the detailed
information related to the design
and construction of products.
4. MATERIALS
• are used in the manufacture of raw
materials into finished goods.
• The materials include both direct and
Indirect or consumable materials. The
specifications, quantity needed, and
schedule of delivery should be clearly
stated.
Direct Materials
o are raw materials that are made
into finished products
Indirect Materials
o (as tools, cleaning supplies,
lubricating oil) used in
manufacturing processes which
does not become an integral part
of the product
i. Utilities includes, power, water, and
sometimes gases and steam depending
on the type of product or services.
ii. Waste disposal and waste treatment
facilities are necessary to protect
the environment.
iii. The production cost is the sum of
direct cost, and overhead expenses.
iv. The product-mark up or profit is the
amount to the total production cost.
 Lesson 3 ▪ Travelling and
Transportation expenses
▪ Advertising and Publicity

INCOME expenses
▪ Delivery expenses
▪ Sales Taxes

STATEMENT 2. Administrative expenses

▪ Also called general expenses;
cost incurred
administering the company’s
in

AND BALANCE business.

eXAMPLES
▪ IT SERVICES COST

SHEET ▪ INDIRECT LABOR SALARIES AND

WAGES
▪ FINANCE AND INSURANCE COS
▪ OFFICE MAINTENANCE
INCOME STATEMENT ▪ BUILDING RENT, AND
MAINTENANCE COST
OTHER eXAMPLES
INCOME STATEMENT ▪ Salaries and Expenses of
general executives and of
• It reports income and expenses activity the general accounting and
for a specific period of time. credit departments;
• Profit is reflected in the owner’s equity
▪ Contributions
section of the balance sheet by using
▪ Professional Fees
the expanded accounting equation:
▪ Depreciation of Office
Assets = Liabilities + Owner’s Equity
Buildings and Office
It starts with: Equipment
Sales ▪ Amortization of Intangible
o commodities actually sold by the Assets
company.
Operating Expenses BALANCE SHEET
o Operating expenses are the costs
of a company's main operations:
1. Selling Expenses
▪ Refers to cost directly
BALANCE SHEET
• A statement of the financial condition
related to selling, of an enterprise at a given point of
advertising, and delivery of time, usually on yearly basis.
a company’s goods and/or • The two most important financial
services to the customers. statements of an enterprise are the
eXAMPLES income statement and the balance sheet.
▪ Salesmen’s salaries, • The balance sheet is composed of three
commissions and bonuses basic parts: assets, liabilities, and
capital (owner’s equity).
• It shows what the company owns, what made available
it owes, what the company has invested, for sale.
and the accured profits or losses. c. Raw Materials
• Conventional accounting equation (Asset – Yet to be
= Liabilities + O.equity) processed in
A BALANCE SHEET INCLUDES: the company’s
operational
Assets activities.
o Something valuable that an entity d. Factory or
owns, benefits from, or has use Manufacturing
of, in generating income. Supplies – like
1. CURRENT ASSETS raw materials,
▪ Items which could be easily but is not
realized or can be easily be physically part
converted into cash or sold of the
during a normal operating manufacturer
cycle. process (not
a. Cash manufactured
• can be “on hand” by the
and/or “in bank”, company, it
local. came from
b. Inventories other
• stocks of raw company).
materials, stocks in- Example
process or finished Candy
products which have wrappers,
been altered or Boxes and
converted into “other Bottles of food
forms” before being products
made available for 2. INVESTMENTS
sales. ▪ Tangible and intangible
• These items comes in assets which are purchased
the form of: which future benefits
a. Finished Goods is/are expected.
– Completed Example:
products ready ▪ Machineries and
for sale. merchandise, Granting of
b. Goods (Work) in study grants, scholarships,
Process – seminars etc.
Partially 3. FIXED ASSETS
completed ▪ Assets of relatively
products permanent nature, used in
requiring company’s business
further operations, NOT FOR SALE.
processing
before being Example:
 ▪ Land, Buildings, Machineries,
Equipment, Furniture, and
Fixtures.
4. INTANGIBLE ASSETS
▪ Long-lived assets with no
form of physical
characteristics.
▪ Value could be traced in the
form of rights, privileges,
and competitive advantages.
Example:
▪ Patents, Good wills,
copyrights, franchise, trade
marks.
5. OTHER ASSETS
ORGANIZATIONAL COST
▪ expenses incurred in the
forming organizing or
establishment of business.
Example:
• Legal fee (Registration
fees)
• Promotional and Under
writing fees (fee
charged for verifying
the information on the
loan application and
making final decision to
approve it.
• Cost of Printing
Certificate of Ownership
(Stocks) and other
printed requirements of
the company normal
operating cycle.
Liabilities
o Accounts and wages payable,
accrued rent and taxes, trade
debt, and short and
long term loans.
Net Worth
o The value of the business after
deducting what the business owes.
 Lesson 3 ▪ .Job Description include:
(content of Job Description)
Job Specification

ALL ABOUT ▪ it gives the specific

qualifications required for
the such as type experience

RECRUITMENT needed for the job, special

training, skills and physical
demands, special abilities,
aptitude, age, physical
RECRUITMENT qualifications and other
requirement
• It is the process of convincing or 2. Requisition of New Employee
encouraging a prospective applicant to o A formal requisition form is
fill in a vacant position. Recruitment required
process includes: o indicating the position to be filled
1. Analyzing the requirements of a o date needed
job; o qualifications and other
2. Attracting the employees to that requirements needed for an
job; applicant.
3. Screening and selecting applicants; 3. Actual Recruitment of
4. Hiring applicant/s.
5. Integrating the new employee to o Sources of applicants can be
the organization. internal or external.
STEPS IN RECRUITMENT SOURCES OF APPLICANT
1. Study the different company Internal
jobs and write ▪ Employees recruited within
the company.
its description and
External
specifications ▪ Applicants recruited through
JOB DESCRIPTION advertisement, referrals,
▪ It defines the duties and placement agencies, etc.
responsibilities of a
particular position.
▪ Essential part of hiring and SELECTION
managing employees
▪ It ensures that employees • It is the process through which
understand their roles and organizations identify and make
what they need to do. decisions about the applicant/s who will
▪ Good Job Description be allowed to join in the company.
typically begin with a • The selection process should be able to
careful analysis of the • identify the applicants that have the
important facts about a following:
job. o Knowledge
o Abilities
 o Skills employee to obtain
o Other characteristics required. important information of
STEPS IN SELECTION the applicant
▪ Essential to check the
1. Reception of Applicants employee’s work
o it involves screening of applicants performance and his ability
by which applicants are to do a specific job and
interviewed other essential information.
2. Filling out of Application 7. Hiring
Form o The applicant who passed the
o This serves as a guide in selection requirements is sent to
interviewing the applicant. This is the Human Resource Department
to determine if the applicant (HRD) for final completion of
matches the job requirements. hiring process.
This is also a basis in checking the 8. Orientation
applicant’s school records, former o The new employee/s are oriented
employers and references. on company policies, rules and
3. Preliminary Interview regulations and informed Or
o Its main purpose is to check if directed about his job.
the applicant is qualified for the
position and eliminate those
applicants who are disqualified
4. Employment Test
o This is given to measure the
applicant’s abilities needed for the
job
5. Final Interview by Immediate
Supervisor or Department
Head
o To determine who among the
applicants should Be hired and
fitted for the job
6. Physical and Medical
Examination
Medical Examination
▪ Helps to determine if the
applicant is fit
to work or to find out
health concerns
that might hinder him to
work
Pre – Employment Test
▪ background check is
essential in hiring an