ENTREPRENEURSHIP 7Ps MELC3

03/24/2023
ENTREPRENEURSHIP ENTREPRENEURSHIP
Marketing Mix?
Importance of Marketing
Mix
Importance to Marketing 7P’s of Marketing Mix?
Strategy
P - Product
Importance of Marketing Mix in developing

Marketing Strategy
A set of controllable and It is significant instrument

connected variables that a roduct
in planning and executing rice
company gathers to satisfy a the right marketing lace
customer better than its promotion
scheme through operative
competitor. strategies (Hill, 2016).
03/24/2023
roduct
rice
lace
promotion
eople
rocess STRENGTHS &
hysical Evidence COMPETITIVE PROFIT
WEAKNESSES
Goods Need or Something

roduct or Want that give
Services satisfaction
03/24/2023
Physical item
that a
business
enterprise
offers.
BREAKTHROUGH PRODUCT
Products that offer
completely new
advantages.
03/24/2023
DIFFERENTIATED PRODUCT COPYCAT PRODUCT

It try to claim new space in the Look alike products will not make
mind of the customer different much conception on the
from the spaces occupied by consumer’s mind.
existing products.
NICHE PRODUCT
Products with lower reach, lower
transparency and lower prices. Features
Quality Design Brand
Name
03/24/2023
A name, symbol, or other

Brand marker that businesses
Name use to distinguish their
Packaging After-sale Warranty
products from
competitor’s and foster SILENT Service
SALESMAN
public identity.
rice
03/24/2023
The value of money in The only element among the

exchange for a product or seven P’s of the marketing mix
service. that generates sales revenues.
ENTREPRENEURSHIP www.reallygreatsite.com
SELLERS’ POV BUYERS’ POV
To make To be fair
profit and equitable
03/24/2023
UNIT VARIABLE
FIXED COST
COST
COST PRICE VALUE
DIRECT DIRECT DIRECT
Leadership Differentiation
MATERIALS LABOR OVERHEAD
Focus
UNIT VARIABLE COST UNIT VARIABLE

COST
Cost to manufacture one unit of
product. DIRECT DIRECT DIRECT
MATERIALS LABOR OVERHEAD
03/24/2023
DIRECT MATERIALS
UNIT VARIABLE COST Example: We are to create a shirt

that will require of 2 meters of
fabric, 5 meters of thread, 6
DIRECT MATERIALS buttons, and 1 cardboard box
Materials used in producing the
product.
ENTREPRENEURSHIP
DIRECT MATERIALS ENTREPRENEURSHIP
MATERIAL COST COST/SHIRT

Fabric P100.00/m P200.00 UNIT VARIABLE COST
Thread P4.00/m P20.00
Buttons P5.00/pc P30.00
Cardboard
DIRECT LABOR
P10.00/pc P10.00
box Wages of all workers directly
TOTAL P260.00 responsible for making the product.
03/24/2023
ENTREPRENEURSHIP
DIRECT LABOR ENTREPRENEURSHIP
DIRECT LABOR
PROCESS LABOR COST per PIECE

Example: Workers are paid on a
Fabric cutting P30.00
per-piece basis.
Sewing P25.00
Collar attachment P5.00
Button attachment P5.00
TOTAL P65.00
UNIT VARIABLE COST

UNIT VARIABLE
FIXED COST
COST
DIRECT OVERHEAD
Expenses that are related in making the DIRECT DIRECT DIRECT
product other than the raw materials. MATERIALS LABOR OVERHEAD
03/24/2023
FIXED COST FIXED COST

Expenses incurred by the organization that Includes exec and staff wages, office rental,
are not related to the manufacture of advertising & promotions, professional fees,
product. etc.
ENTREPRENEURSHIP
FIXED COST ENTREPRENEURSHIP
Example:
Total Fixed Cost 4000,000.00 COST COMPONENT AMOUNT
Total No. Shirt 4,000.00 Direct Materials P260.00
Direct Labor P65.00
Fixed cost per unit 100.00 Direct overhead P5.00
Unit fixed cost P100.00
TOTAL P430.00
03/24/2023
Price offered to market is the

PRICING
same with the total unit cost
with no profit nor loss incur. STRATEGIES
UC
MUP =
1 - DMU
Allows the seller a fixed markup
every time the product is sold Where:
MUP = Mark-up pricing
UC = Unit cost
DMU = Desired Mark-up
03/24/2023
UC = VC/u + FC
US Given:
Where: VC/u = P10.00
UC = Unit cost FC = P300,000
VC/u = Variable cost per unit US = 50,000 units
FC = Fixed cost
US = unit sales
DMU = 20%
DR x IC
TRP = UC +
US
Allows a product manufacturer
to recover a certain portion of Where:
TRP = target return price UC = unit cost
his/her investment every year DR = desired return IC = invested capital
US = unit sales
03/24/2023
Given: Premised on the theory that

UC = P16.00 consumers will perceive products
DR = 25% with odd price endings as lower in
price than they are.
IC = P1,000,000
US = 50,000 units
The practice of setting low prices on The practice of selling

selected products which will result in the
generation of less profits, but with the
merchandise at a limited
objective of increasing the sales volume number of predetermined price
of other products sold by the company. levels.
03/24/2023
Disregards the unit cost of a Prices its product at a range

product or service implemented below its unit cost but higher
by the fragrance and skin care than its unit variable cost.
products.
Prices lower than unit variable Prices its product at the same
cost, initially resulting in short- level as or very close to its
term losses. competitor’s prices.
03/24/2023
Temporary reduction in the

selling price in order to induce
trial or to encourage repeat
purchase. PRICING STRATEGIES
Product’s selling price is way

New product is priced only
above its unit cost
Allows company to recover its marginally above its unit cost.
research & development cost and
expenses
03/24/2023
Objective is to capture a large It can discourage would-be

part of the market at an early competitors form entering the
stage by making the product market because of low price
affordable to the greatest mark up.
number of people.
It represents the location

lace where the buyer and seller
exchange goods or services.
03/24/2023
To provide a link between

production and consumption. It is also called as the
distribution channel.
The routes to market that The producer sells either

a product takes from directly to the customer or
producers to the final through a retailer.
customer.
03/24/2023
PRODUCER
There are more than one

intermediary (middle person)
between the producer and
the customer.
CONSUMER RETAILER
PRODUCER
WHOLESALER
RETAILER
CONSUMER

ENTREPRENEURSHIP 7Ps MELC3

Uploaded by

Copyright:

Available Formats

You might also like

ENTREPRENEURSHIP 7Ps MELC3

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ENTREPRENEURSHIP 7Ps MELC3

Uploaded by

Copyright:

Available Formats

03/24/2023

Importance of Marketing Mix in developing

A set of controllable and It is significant instrument

Goods Need or Something

DIFFERENTIATED PRODUCT COPYCAT PRODUCT

A name, symbol, or other

The value of money in The only element among the

SELLERS’ POV BUYERS’ POV

UNIT VARIABLE COST UNIT VARIABLE

UNIT VARIABLE COST Example: We are to create a shirt

MATERIAL COST COST/SHIRT

PROCESS LABOR COST per PIECE

UNIT VARIABLE COST

FIXED COST FIXED COST

Price offered to market is the

Given: Premised on the theory that

The practice of setting low prices on The practice of selling

Disregards the unit cost of a Prices its product at a range

Temporary reduction in the

Product’s selling price is way

Objective is to capture a large It can discourage would-be

It represents the location

To provide a link between

The routes to market that The producer sells either

There are more than one

You might also like