Republic of the Philippines

DEPARTMENT OF EDUCATION
Region VI-Western Visayas
Division of Negros Occidental
LA CASTELLANA NATIONAL HIGH SCHOOL
Sitio Villacaña, Brgy. Robles, LA Castellana, Negros Occidental

ENTREPRENEURSHIP

Quarter 1-Week 5
 HOW TO USE THE MODULE?

As you start studying the module, I want you to set aside other task/s
that may disturb you while enjoying the lessons. Read the
instructions below to successfully enjoy the objectives of this kit. Have
fun!
Follow carefully all the contents and instructions
indicated in every page of the module.
Write in your notebook the concepts about the lessons.
Writing enhances learning, which is important to develop
and keep in mind.
Perform all the provided activities in the module.
Let your facilitator/guardian assess your answers using the
answer key card.
Analyze conceptually the post-test and apply what you have
learned.
Enjoy studying!

PARTS OF THE MODULE

• Expectations - This will give you an idea of the skills or
competencies you are expected to learn in the module.
• Pre-test - This will measure your prior knowledge and the concepts
you are to master all throughout the module.
• Looking Back to your Lesson - This section will measure what
competencies and skills you have learned from the previous lesson.
• Brief Introduction- This section will give you an overview of the
module.
• Activities - These are sets of activities you will perform with a
partner.
• Remember - This section summarizes the concepts and applications
of the module.
• Check your Understanding - It will verify the concepts and
competencies you learned from the lesson.
• Post-test - This will measure how much you have learned from the
entire module
 Lesson Screen the proposed solution/s and
1 select the best product or service

EXPECTATIONS

After going through the module, you are expected to:

1. Screen the proposed solution/s based on viability, profitability and
customer requirements
2. Select the best product or service that will meet the market need and
3. Finalized an acceptable business plan.

career.
You mayAre you
start excited
your to answer
journey the Pre-test?
in learning more on Smile and Enjoy!
screening
the proposed solution/s, selecting the best product or service.
Are you excited to answer the Pre-test? Smile and Enjoy!

PRE TEST
DIRECTIONS: To check your prior knowledge about the topic, please list down at least
five (5) businesses that are profitable during Covid 19 and five (5) viable businesses
that survive for 10 years in your locality.
Write your answer in the space provided.
Profitable Business Viable Business
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.

You have finished answering the Pre-test. You may request your
facilitator or guardian to check your work. Congratulations and keep on
learning.
 LOOKING BACK TO YOUR LESSON

As you go further, let us try to recall about the difference of product and service.
These two words are often used interchangeably to describe one thing and in
actuality it is something different. The main difference between them is products
are tangible objects that can be seen, felt and can be moved, whereas, services are
intangible and cannot be moved.

Key Features of a Product

The main character of a product is that it is a physical item that is tangible. When
the sale is completed the item can be moved, returned or replaced and can be
exchanged for the correct item.
A product can be owned and said ownership can be transferred from the provider to
the purchaser at time of sale.
On a customer care perspective, a product is limited. The elements of branding and
additional features of the product can help separate like products that will attract
customers.
Key Features of a Service
A service is defined as work that is completed by a person for another individual. The
quality of the service from an organization is often what motivates customers to
purchase the service not the product itself. Once a customer is satisfied with the
service, they will become repeat customers and will recommend others to the service.
A service can and usually has continuous billing cycles to continue supplying the
service. A service cannot be returned to the provider since it is an intangible item.

BRIEF INTRODUCTION

When it comes to building a highly profitable ecommerce business, choosing the right
product is without a doubt the most important piece of the puzzle. A critical first step
in making sure you’ve picked a winner is evaluating the market demand, existing
competition and viability of the product itself. Key question often asked by start-up
entrepreneurs is what to sell in the business. What products or services could you sell
that will make you money? The selection of the right product or service is critical. In
fact, the choice of a product or service for your business can make or break your
business.

What is viability? (www.small businessconnect.co.za/advice/know-whether-

business-viable.html)
Viability is defined as the ability to survive. In a business sense, that ability to survive
is ultimately linked to financial performance and position.
A business is viable where either:
It is returning a profit that is sufficient to provide a return to the business owner while
also meeting its commitments to business creditors. It has sufficient cash resources to
sustain itself through a period when it is not returning a profit.
FACTORS TO CONSIDER WHEN EVALUATING VIABLE BUSINESS
OPPORTUNITIES
An entrepreneur needs to determine whether the business idea they have in mind is
viable or not. When evaluating the viability of the business opportunity, the following
factors need to be taken into consideration:
1. Potential for growth:
An opportunity is said to be viable, when it has the ability to grow and expand.

2. Infrastructure:
Easy access to infrastructure such as roads, water, electricity, telephone and postal
services among others enables business enterprises easily make orders for goods and
deliver them hence reducing operating expenses. With low operating expenses, profits
can be maximized.

3. Market for the goods and services:

An entrepreneur has to access potential and actual market for the goods and services
he would like to sell. There must be a clearly defined market if the opportunity is to be
considered.

4. Rewarding to the investor:

The opportunity should be rewarding to the investor (cost-benefit consideration). He
should consider the expected returns against the expected cost to ensure that the
benefits outweigh the cost.

5. Price structure:
One has to put into consideration the price-structure of the goods and services he
would like to offer. Goods and services, which are subjected to constant inflation, are
likely to change in terms of price.

6. Competition and Competitive advantage:

Competition is regarded as a threat to business of similar kinds operating in a similar
location. Although competition is a threat, it is healthy in the sense that it goes along
the way in controlling price of goods offered. It is crucial for entrepreneurs to consider
opportunities where competition is not high as this will enable them to get reasonable
market share. They should venture where competitive advantage is.

7. Incentives:
Offered by the government and Non-Governmental Organizations, incentives are
legitimate business opportunities to exploit as they save on costs. E.g. duty-free
importation of sugar and maize, tax waivers, etc.
8. Legal Consideration:
The new idea should be in line with the legal regulatory framework e.g. an idea to sell
drugs may not be viable because it is illegal.

9. Financial viability:
The assessment of financial viability is of significant importance when looking at the
viability of the business. Capital investment requirements, break even analysis, cash
flow projections, profitability of the business have to be analyzed. This is because they
determine the sustenance of the business in the market-mix.

10. Personnel, Training and Management:

Before starting a business, it is necessary to make an assessment of the required
personnel training and management. Look at the ability, cost of hiring and training
human resource. Management efficiency will enable the business to succeed.
Profitability-is the ability of a business to earn profit.
A profit is what is left of the revenue a business generates after it pays all expenses
related to the generation of the revenue, such as:
Producing a product and other expenses related to the conduct of the business
activities.
What determines a company’s profitability?
1. Sales
The return on sales ratio measures profits after taxes based upon the current year’s
sales. If the number of sales is high, a company is better prepared to handle adverse
market conditions and economic downtrends. The gross profit margin is a measure of
gross profit earned on sales. An effective sales strategy is essential in increasing a
company’s profitability.

2. Pricing
Price setting is a key factor in determining profit. Careful analysis is necessary in
determining the correct pricing strategy for a company. A business owner must look at
what competitors are charging and determine what prices he would charge to
maximize profit. An important factor to consider to consider in pricing strategy is
determining what price customers are willing to pay for a product.
3. Expenses
For a company to become profitable, income must exceed expenses. Expenses can be
defined as the cost of resources used in the activities of a business. Profits for the
company are determined by analysing what is left over after expenses are subtracted
from total revenue. Any cost-saving measures initiated by a company will bring
expenses down and increase overall profitability.

4. Cost of Staying in Business

Return on net worth shows how much a profit a company generates on the money
equity shareholders have invested. The return on net worth should at least be equal to
the rate a business can borrow money from its creditors to achieve the cost of staying
in business. A company that is showing a profit but has a low return on net worth still
has profitability issues.

5. Measuring Profitability
Measuring profitability is the same as measuring the success of a business. An income
statement shows a breakdown of income and expenses during the business year. One
measure of a company’s profitability is the profitability ratio. Profitability ratios
analyse the financial health of a business. A profitability ratio looks at how profit was
earned in relation to sales, total assets and net worth.

Value proposition and Unique selling proposition

A value proposition (VP) simply states why customer should buy a certain product
or service. Customers are very specific when it comes to their needs and their desired
benefits, so the value proposition should cater to those particular needs. Thus, the
value proposition is the major diver in customer per chase or service availment. The
start-up entrepreneur will surely have a hard time thinking of a value proposition for
his or her business. The entrepreneur should bear in mind that a value proposition
has to be direct in addressing the problems of the customer, should have quantifiable
benefits, and should differentiate itself from the competitors.
Creating an effective value proposition to the target customers:
1. Prepare a situation analysis that details the problem (s) of the customers.
2. Make your value proposition straight to the point, simple, and specific; in short,
there should be known complications. Your value proposition has to target your major
objective.
3. Highlight the value of your product or service so that customers will easily get what
benefits you can provide.
4. Adapt to the language of your market. Ensure that your target market understands
clearly what you are trying to say and avoid putting unnecessary in explicable places.
5. Add credibility-enhancing elements such as actual testimonials from customers,
partners, and other stakeholders, putting specific assurance elements and social
acceptability metrics from in social media and press materials. Several quality
management certifications, such as the ISO seal, add more credibility to the product
or service that you are trying to sell.
6. Differentiate your value proposition with your competitors. Examples of value
proposition differentiators are the originality of the product or service, its
functionalities, or if the product or service can be tailor-fitted to the customer’s
preference, among others.
To illustrate, here is a sample potential value proposition from the most common
small businesses in the Philippines.
Aling Tere’s sari-sari Store
Situation analysis:
Prior the establishment of a sari-sari store Aling Tere notices that there is a
convenience store in her vicinity, where many call center agents, nurses, and
construction workers buy food, beverages, and other products during odd hours (from
10 pm to 6 am). She discovers that the customers either ride a tricycle or a jeepney
just to reach the convenience store. There are two sari-sari stores nearby, but they
close at 9 pm. Aling Tere believes this an opportunity for a sari-sari store business
with a twist. Aling Tere realizes she needs to address the needs the needs of the
customers to differentiate her business from the competition.
She decides to establish a 24/7 sari-sari store. As an initial investment, Aling Tere
hires three employees who will help her run the sari-sari store in three shifts. During
their break, Aling Tere mans the sari-sari store herself. She designs her sari-sari store
like a semi convenience store, where customer can freely go and choose the product
they want. It is also air-conditioned. For security purposes, she also installs a CCTV
camera. Her task now is to craft a worthwhile value proposition for the potential
customers.
Proposed value proposition: “Tindahang maasahan, bukas kahit anong oras!”
Why should be this considered an effective value proposition? It is specific and
straight to the point. It describes what the business is by referring to tindahan──a
Filipino term for a basic retail store. It highlights the value to the customers that they
can buy their basic necessities from this value proposition because the phrase “bukas
kahit anong oras” signifies a guarantee that customers will be served anytime of the
day. And last, Aling Tere’s store is the only sari-sari store that is open 24/7, which
makes her store different from competitors.
On the other hand, a Unique Selling Proposition (USP) refers to how you will
sell the product or service to your customers. It addresses the customers’ wants
and desires. After you create your value proposition, you have to figure out to how to
advertise or promote certain unique features of the product or service that you’re
trying to sell. You can do this in the form of product or service characteristics,
promotion strategies and tactics, distribution centers and supply chains, pricing,
physical attributes or physical evidence, human resources or human capital, and
market positioning strategies. The ability to crafts an effective USP is gauge on how
well an entrepreneur knows his or her product or service.
Creating an effective unique selling proposition to the target customers:
1. Identify and rank the uniqueness of the product or service attribute.
This is the most difficult part because you only need to choose one or two at the most.
That attribute will be your key to success, as this will compel customers to purchase
from you and not from your competitors. The unique selling proposition, while it
presents the best features of your product or service, should also avoid competition.
2. Be very specific. Out details that emphasize the differentiators against the
competitors. This differentiator should be very compelling and should make the
customers think that they are really getting more value from you than the others. By
being a specific, make sure that the USP does not rely on heavy, extravagant
promotion. The customers do not want to feel that they are being fooled.
3. KISS (keep it short and simple). One challenge that marketers always face
is that the customers’ attentions pan is limited and very easy to switch. Therefore,
think of a very catchy unique selling proposition in the simplest and shortest way
possible.
TEMPLATES FOR WRITING A VALUE PROPOSITION THAT WORK

Geoff Moore's Value Positioning Statement

Probably the most popularized - in his seminal book Crossing the Chasm - Geoffrey
Moore suggests a specific template for outlining your value positioning. In addition to
the first part below, More also introduces a second statement focused on competitive
positioning.

Template
For _________(target customer) who _________(statement of the need or opportunity)
our ________(product/service name) is ___________(product category) that (statement
of benefit) _________.

Sample(s)

For non-technical marketers

who struggle to find return on investment in social media
our product is a web-based analytics software that translates engagement metrics
into actionable revenue metrics.

WHAT TO SELL: HOW TO SELECT THE RIGHT PRODUCT FOR YOUR BUSINESS

How do you choose the right product to sell? Here are a few questions to help you
narrow your focus and hopefully select the product that will work for you:

1. What are your primary considerations for choosing a particular product?

Make a list of your selection criteria, and what you think are important to you in
identifying what business to engage in. There is a myriad reason for selecting a
product, and these reasons can include: financial benefit to your business, relatively
low investment requirements, positive return on investment, fit with present strategy,
feasible to develop and produce, easy to source and procure. relatively low risk, and
time to see intended results.

2. Can you meet the needs of the customer and solve a specific problem?

Your product must address a need or an opportunity. You need to know how your
products or services can assist customers. It must have a real value that customers
can recognize, want and need. Include in your product information and sales
materials how your products can benefit the customers, e.g. help reduce time, effort
and expense.

3. How capable are you to produce the product?

Just as an athlete needs to know his physical condition before he enters a race, you
must also know if you have the time, resources and capability to produce your
product.

4. What is the size of your potential reachable market?

You need to at least get an idea of the size of your market. Know who are likely to use
or benefit from your products. If you are selling an information product on how to sell
at Lazada or Shopee. define who will be your potential customers you think will be
interested in your product.

5. Would you need to comply with government rules and regulations?

New laws or government rules and regulations can impact your product. Some
products can be sold immediately without the need for government approval. Others,
however, require permits, licenses and approval from the government.

6. If a similar product exists, can your product be superior in its functionality,

presentation or marketing?

This entails knowing and understanding your Unique Selling Proposition. Your
unique selling proposition is the one thing that makes that your product different
than any other. It's the one reason they think consumers will buy the product even
though it may seem no different from many others just like it.

7. What barriers must be overcome for a potential new product entry?

Barriers to entry include high research and development expenditure, high presence
of start-up or sunk costs, and international trade restrictions such as tariffs and
quotas.

8. What are the potential sales, growth, profits, and time for pay back?
Before starting your business, run your numbers first. Get a clear idea of your cost
structure, how much sales you need to have to breakeven and post a profit, and what
your return on investment will be.

HOW TO WRITE A BUSINESS PLAN

A business plan is a document that describes your business in terms of what it does,
the products and services it offers, your business strategy and business goals and
your action plan outlining how you plan to achieve your goals and earn money.
In a simple sense, a business plan serves as your road map that will guide your
business to success.

The main purpose of a business plan is to:

1. Show the future financial performance of the company and its economic situation
for the owners and investors.
2. Help identify risk that may affect the growth of the company and its economic
situation for the owners and investors.
3. Help make predictions about market trends, competitor behavior, customer
requirements and define and patronize key business objectives.
4. Serve as a key resource for developing budgets.

Parts of a Business Plan

1. The Executive Summary

This is a concise summary of the plan’s important points. This section gives a
synopsis of your entire business plan and is often intended to give readers a clear
idea of what the business is all about. Although placed at the beginning of the
document, it is actually written last, after the entire business plan is completed.

2. Mission, Vision and Values Statements

These define the philosophy and purpose of your business. It states your ultimate
goals and describes how you want your business to be regarded by your target
market.

3. Business Description
This section will explain in greater detail what the business is all about. It will also
state the rationale behind the business – it’s importance, target market and
profitability. This part also describes the business processes involved in running the
venture as well as the business model that will be used. It shall also enumerate the
equipment’s that will be utilized, the space requirements and other operating
necessities.

4. The Business Organization

This portion lists the key positions in the business organization, including the
different departments, the required number of personnel and the duties and
responsibilities of each person involved. You can also provide a profile description of
the management team. Write down the necessary leadership skills, personal
resources and required background experience of the people that will run the
business.

5. Products and Marketing Plan

This part will discuss the products and services of the business. What are you
offering? Who is your target market? How big is your audience? What is the current
situation of the industry? Along with your demographics and market analysis, provide
the strategies that will be used to influence sales. This means defining your edge and
showing how you plan to compete against existing brands.

6. Financial Strategies
If you’re pitching your business plan to potential investors, then you must make this
part as comprehensive as you can. This section describes how the money will flow in
and out of your business. Include a breakdown of capitalization expenses, a detailed
budget for operating costs, sales and profit projections, a breakeven analysis, the
expected duration for return of investment (ROI) and other performance statistics.
Your financial strategy must show investors that your business will be profitable; but
more importantly, it should provide you with a realistic view of how the business is
expected to perform.

ACTIVITIES

Activity 1. Read and analyze the facts about business viability and profitability.
Determine whether the statement is TRUE or FALSE. Write TRUE if the statement is
correct and write FALSE if otherwise. Write your answer on the answer sheet.

1. Clearly lay out the specific business problem that you believe your product or
services solves.
2. Understanding existing and potential competitors is not enough when it comes to
evaluating your opportunity.
3. High prices of your product and service and how will that approach ultimately lead
to revenue and ultimately profitability.
4. Viability is an essential ingredient to the long-term profitability of a business.
5. Profitability is often the universal scorecard for the periodic success of any
business.
6. If the revenue from sales covers your expenses, you’re turning a profit.
7. A great way to determine whether or not your business makes sense currently is to
take advantage of everyone around you.
8. Viability in business entails that you need to make sure that you schedule your
opening day right at the peak of company’s demand.
9. To become successful, you need to always be aware of how your business is doing in
terms of input and output.
10.Many businesses are able to get out of the planning stages because they have not
gotten the rudiments of viability in business.

MAKE MEANING-INTERNET ASSISTED ACTIVITY

ACTIVITY 2. DIRECTIONS: Give the meaning of the following word/phrase in each

item. You may use the internet to define the given word/phrase. Write your answer in
the answer sheet.
1. Customer Requirement _________________________________________________
2. Business Opportunity ___________________________________________________
3. Market Demand _________________________________________________________
4. Company’s Mission ______________________________________________________
5. Value Statement _________________________________________________________

REMEMBER
• A viable business is when we use the term to describe a company, it means
that it is able to survive and succeed. In other words, the business continues
making a profit year after year – it is profitable. It is a going concern. When a
company has more money coming in than going out, it is making a profit.
• A value proposition is a statement that answers the ‘why’ someone should do
business with you. It should convince a potential customer why your service or
product will be of more value to them than similar offerings from your
competition.
• A business plan is a written document that describes in detail how a
business—usually a new one—is going to achieve its goals. A business plan
lays out a written plan from a marketing, financial and operational viewpoint.

CHECK YOUR UNDERSTANDING

ACTIVITY. Think of a possible product/service that you want to introduce in the

market. Using the template above write at least 2 design templates to help you create
a clear, compelling value proposition. Write your answer on the answer sheet.
Value Proposition 1.
____________________________________________________________________________________
____________________________________________________________________________________
Value Proposition 2.
 POST-TEST
Identification. Read and analyze the statements below and identify whether it is a
factor in considering viability or it determine the company’s profitability. Write V if it
is viable or P if it is profitable.
_____1. Sales
_____2. Rewarding to the investor
_____3. Incentives
_____4. Price structure
_____5. Cost of Staying in Business
_____6. Expenses
_____7. Potential for growth
_____8. Market for the goods and services
_____9. Personnel, Training and Management
_____10. Pricing

Multiple Choice. Read and analyze the statements below and write the letter of the
best answer in your answer sheet.

1. Writing a business plan can ensure that an entrepreneur

A. figures out how to make her business work
B. meets his target revenue goals
C. achieves her expense projections
D. enumerate all the equipment needed
2. Making the beliefs, values, and behavioral norms explicit and intentional builds the
__________ of an organization.
A. mission B. culture
C. vision D. strategy
3. The cover page of a business plan should contain:
A. key financial highlights B. contact information
C. funding request D. building image
4. The ______________ section of the business plan should be written last.
A. financial statements B. executive summary
C. appendices D. business description
5. Part which includes the different departments, the required number of personnel
and the duties and responsibilities of each person involved. Refers to what part of the
business plan?

A. products and marketing plan

B. financial strategies
C. business description
D. business organization
 REFLECTIVE LEARNING
To succeed as an entrepreneur, you must develop the ability to select and offer the
right products or services to your customers in a competitive market. More than any
other factor, your ability to make this choice will determine your success or failure.

There are thousands of products and services available to consumers today. And
there are unlimited opportunities for you to enter the marketplace and compete
effectively with a new product or service that's better in some way than what's already
being offered by your competitors. Remember, your skill at choosing that product or
service is critical to your success.
(Brian Tracy, https://www.entrepreneur.com/article/78778)

Congratulations! You are almost done in this module. Please write your
idea on the situation below.

DIRECTIONS: As would be Entrepreneur, you are tasked to write down a

Business Plan. Look for a product or service that is viable, profitable and
needed in your locality. Using the template below write the content of
Business Plan of your preferred business.
Sample Cover Page and Table of Contents

[Company Name or Business Name]

Studio Us

[Your Tagline]

In the Heart of the Image

BUSINESS PLAN
November 5, 2020

[Contact Information]
Wilmar C. Orteza
Studio Us
Email: studious@gmail.com
#22 Bonifacio St. La Castellana, Negros Occidental
6131
Table of Contents
I Executive Summary ---------------------------------------------
II. Mission, Vision and Value Statements -------------------
III. Business Description -----------------------------------------
IV. Business Organization --------------------------------------
V. Products and Marketing Plan ------------------------------
VI. Financial Strategies ------------------------------------------

Criteria Excellent Very Good (6) Fair (4) Poor No Discussion

(10) Good (2) (0)
(8)
1. Cover Page
2. Table of
Contents
3. Executive
Summary
4. Mission, Vision,
and Value
Statements
5. Business
Description
6. Business
Organization
7. Products and
Marketing Plan
8. Financial
Strategies
Total Points: 80
Scale Definition
Items
Excellent The section is extremely well developed. The student
(10) demonstrates complete understanding of the material and topics
required to complete the task. The section comprises more than
what is required and presents the topic in a logical, organize and
concise way.
Very Good The section is of high quality. The material is presented very
(8) well. The student demonstrates understanding of the topic.
Good (6) The section is developed satisfactorily. The student complies
with the basic requirements of the section. The writing is
acceptable. Demonstrates understanding of basic concepts.
Fair (4) The quality of the section is below acceptable average. Basic
concepts related to the section are confused or vague. The
student demonstrates poor understanding of the basic concepts.
Poor (2) Almost none of the required themes are elaborated in the
section. The writing is disorganized and very difficult to
understand.
No The student does not elaborate the topic or skips the section.
Discussion

Short size bond paper

Margin - 2.54 cm- top, bottom, left, right
Normal space
Font size – 11
Bold-title
Short sliding folder
Note: Handwritten will do

E-SITES
To further explore the concept learned today, please watch the video about
“Opportunity seeking, screening and seizing on selecting the best product”. Follow the
link below:
https://www.youtube.com/watch?v=OWr4Ch05D_Q
 Lesson Describe the 7PS of marketing mix
1 and develop a brand name

EXPECTATIONS

After going through the module, you are expected to:

1. Recognize the importance of marketing mix in the development of marketing
strategy.
2. Describe the Marketing Mix (7PS) in relation to the business opportunity vis-à-vis:
product, place, price, promotion, people, packaging and physical evidence.
3. Develop a brand name.

You maycareer. Are you

start your excited
journey to answer
in learning the on
more Pre-test?
7PS of Smile and Enjoy!
marketing mix
and developing a brand name. Are you excited to answer the Pre-test?
Smile and Enjoy!

PRE-TEST

DIRECTIONS: To check your prior knowledge about the topic, please fill in the elements
of marketing mix including the brandname that you know. The answer from the top
must be related to all the elements. Write your answer in the answer sheet.

Brand Name
Product
Place
Price
Promotion
People
Packaging
Physical Evidence

You have finished answering the Pre-test. You may request your
facilitator or guardian to check your work. Congratulations and keep on
learning.
 LOOKING BACK TO YOUR LESSON

As you go further, let us try to recall about selecting the best product or service that
will meet the market need.
The selection of the right product or service is critical. In fact, the choice of a product
or service for your business can make or break your business. Choose a product that
requires significant production capital when you have none and couldn’t find any, and
your business is compromised from the start. Offer a service that a hundred other
entrepreneurs offer in your locality and you may find it hard to get noticed above your
competitors. Or select a product with an extremely specialized market yet you do not
know how to reach the potential customers, and your business can go kaput.

BRIEF INTRODUCTION
The marketing mix has been defined as the “set of marketing tools that the firm uses
to pursue its marketing objectives in the target market”. Thus, the marketing mix
refers to four broad levels of marketing decision.
4P’s of Marketing Mix.

A marketing expert named E. Jerome McCarthy created the Marketing 4Ps in the
1960’s. This classification has been used throughout the world. It is the foundation of
the idea of marketing mix. The 7P’s model is a marketing model that modifies the 4P’s
model. It is generally used in the service industries.

PRODUCT
A Product is a tangible or intangible item that is built or produced to satisfy the
needs of a certain group of people. It is in the form of a service or goods. To ensure
the right product, an entrepreneur must know the demand of their consumer in the
market. They must also know how to create the right product mix by expanding and d
Classification of product
• Goods - is something that you can use or consume, like food, CDs, books, a car, or
clothes. You buy a good with the idea that you will use it, either just once or over
and over again
• Services -is something that somebody does for you, like give you a haircut, fix you
dinner, or teach you math.
• Events - is the activity of developing a themed activity, display, or exhibit to
promote a product, cause, or organization. Examples of events are sporting events,
fairs, and concerts.

4 Stages of Product Life Cycle

1. Introduction - firm seeks to build product awareness and develop a market for the
product.
2. Growth - firm seeks to build brand preference and increase market share.
3. Maturity - strong growth in sales diminishes. Competition may appear with similar
products. The primary objective at this point is to defend market share while
maximizing profit.
4. Decline - sales have begun to decrease.

PRICE
The Price of the product is the amount that the customer pays for them to satisfy. It
is the peso value that the entrepreneur assigns to a certain product or service after
considering its costs, competitions, objectives, positioning, and target market.

Common Pricing Strategies:

1. Bundling- this refers to two or more products or services in one reduced price (e.g.,
3-in-1 coffee for ₱8.00, manicure and pedicure for only ₱150).
2. Penetration pricing- this refers to setting low prices to increase the price once the
desired market share is achieved (e.g., mobile app-based transportation service
offering reduced booking fee of ₱15 as its introductory price).
3. Skimming- this is the opposite of penetration pricing where prices are initially high
and then they are lowered to offer the product or service to a wider market (e.g., a real
estate company offering top-tier projects is now offering low cost housing of same
quality to serve the middle market segment).
4. Competitive pricing- this refers to benchmarking prices with the competitors (e.g.,
milk tea prices are competitively price)
5. Product line pricing- this refers to pricing different products or services within a
parallel product array using varying price points (e.g., LED TV is more expensive than
the LCD TV even if under the same brand).
6. Psychological pricing- this considers the psychology and positioning of the price in
the market (e.g., price of haircut service is at ₱199 because consumers tend to think
that odd prices are considerably lower than what they are; in this example, they tend
to round off the price ₱100 instead of ₱200).
7. Premium pricing- this refers to setting a very high price to reflect elitism and
superiority (e.g., prices of signature clothes, bags, perfume).
8. Optional pricing- this refers to adding an extra product or service on the top of the
original to generate more revenue (e.g., meals on top of the air fare).
9. Cost-based pricing- the basis of markup is the cost of sales. For example, the
entrepreneur will compute the cost of coconut juice by adding the cost of the coconut
juice (₱10) and the plastic container (₱4). He or she can set the price at ₱20 to earn ₱6
per coconut juice,
10. Cost plus pricing- the markup is based on a certain percentage of cost (e.g., the
entrepreneur wants to set a 50% markup on the coconut juice cost which is ₱14 x
50% = ₱7; the new price is ₱14+₱7=₱21).

PLACE
A Place is the position and distribution channel of the product to make it accessible
to the potential buyers. An entrepreneur must examine and study the location of its
buyer to easily deliver the product that the customer needs.
Distribution Strategies
 • Intensive distribution – It mainly means a distribution on a large-scale and
displaying the product in as many ways and places as possible so that the customer
sells in high volume due to large scale distribution.
• Exclusive distribution – It is an agreement between supplier and retailer that grants
the exclusive rights within a specific geographic area to carry the supplier’s product.
• Selective distribution – It is a retail strategy that involves making a product or
group of products available only in certain markets.
• Franchising – An agreement where one party (the franchiser) grants another party
(the Franchisee) the right to use its trademark or trade-name as well as certain
business system and processes, to produce and market a good or service according to
certain specifications.

PROMOTION
Promotion involves presenting the products or services to the public and how this
can address the publics’ needs, wants, problems, or desires.
Promotional Tools
• Sales Organization – is a part of the total business organization of a firm. This
unit of the firm is concerned with distribution of goods or services. It may be
produced by the organization itself or may be purchased from manufacturers
for resale.
• Public relation – It is the practice of deliberately managing the release and
spread of information between an individual or an organization and the public
to generate awareness and positive responses to products and services of the
business.
• Advertising – It is the activity or profession of producing advertisement for
commercial products or services. It is a marketing tactic involving paying for
space to promote a product, service, or a cause.
• Sales promotion – It is the process of persuading a potential buyer to buy the
product designed to be used as a short-term tactic to boost sales. In a
contemporary time, there seems to be a shift in focus from offline to the online
world.
PEOPLE
People are the ultimate marketing strategy.
People sell and push the product.
People search hard to find the right market.
People distributes, promote, price, and sell the product in the most attractive market
places.

Four levels of marketing effort of people

1.To create customer awareness
2.To arouse customer interest.
3.To educate customer as they evaluate their buying choices.
4.To close the sale and deliver the products.
PACKAGING
Packaging is how the product or service is presented to customers.
• Determine the uniqueness of the product from competitors
• Preserves the self-life of the product or service
• Packaging’s ultimate goal is to entice customers to purchase the product or
services.
• Servicescape was used to refer to the overall ambiance of the place where the
service is performed.

PHYSICAL EVIDENCE
The physical evidence refers to the physical environment experienced by the
customer. This could mean the design and layout of a shop or website.
This could include:

• the physical design and layout of the premises

• the layout of the company website
Design and layout are important as they need to make customer experience simple
and straightforward. If customers struggle to find what they want they will go
elsewhere. It is important that physical evidence is appealing to customers. It should
also reflect how the business wants to be seen by its customers.
BRAND
Refers to the identity of a company, of a product, of a service, or of an entrepreneur
himself or herself. A symbol of promise or assurance from the entrepreneur that what
it purports to the customers will happen.

BRAND DEVELOPMENT PROCESSES

1.Decide what you’re going to brand

Are you branding a product, a service, a company, or an individual?
2. Do your research
First, find out everything there is to know about your market. Then, find out
everything there is to know about your product or service.
3. Position your product or service
Find and win a place for your offering in the marketplace and in consumers’ minds by
providing unique solutions to problems or needs that aren’t already being addressed
by competing products.
4. Write your brand definition
Your brand definition describes what you offer, why you offer it, how your offering is
different and better, what unique benefits your customers can count on, and what
promise or set of promises you make to all who work with and buy from your
business.
5. Develop your name, logo and tagline
Your name is the key that unlocks your brand image in your consumer’s mind.
Your logo is the brandmark or symbol that serves as the face of your brand. Your
tagline is the memorable phrase that provides consumers with a quick
indication of your product, brand, and market position.
6. Launch your brand
Your brand goes public when you unveil your name, logo, and slogan, and when you
begin to tell your market the story of how your brand reflects what you stand for.
7.Manage, leverage, and protect your brand
This is the “care and feeding” phase of the branding process; it’s the step that leads to
a strong, healthy, resilient brand. Just like good parenting, good branding
management can be summed up in a single word — consistency.
8. Realign your brand to keep it current
Occasionally, you can (and should) change how your brand is presented. From time to
time, you need to update your brand presentation (the face of your brand) to keep it
relevant to the market in which it lives.

ACTIVITIES
Activity 1. Read and analyze the facts about the 7PS of marketing mix and branding
below. Determine whether the statement is TRUE OR FALSE. Write TRUE if the
statement is correct and write FALSE if otherwise. Write your answer on the answer
sheet.

1. The 4 PS are: product, place, price, personnel

2. The customer should not be considered part of the “marketing mix”
3. The product area is concerned with developing the right physical good service or
blend of both for the target market.
4. Personal selling and advertising are both forms of sales promotion
5. Price is the most important of the 7PS.

Activity 2: Read and analyze the stages of product life cycle. Identify whether this
refers to introduction, growth, maturity or decline stage of a product. Write your
answer on the answer sheet.
1. Sales start to grow rapidly 6. Product loses its appeal
2. Production may be stopped in the 7. Persuasive advertising may be used.
future.
3. Intense competition in the market 8. Sales grow slowly as people are not
aware of the product
4. Profits start coming. 9. Advertising expenditure at its highest
to sustain growth
5. Usually no profit 10. The initial stage of a product life
cycle.

Activity 3. MAKE MEANING-INTERNET ASSISTED ACTIVITY

DIRECTIONS: Give the meaning of the following word/phrase in each item. You may
use the internet to help you define the given word/phrase. Write your answer on the
answer sheet.
1. Marketing
2. Brand management
3. Mark-up
4. Market research
5. Franchise

REMEMBER
1. 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.
(https://economictimes.indiatimes.com/definition/marketing-mix)
2. The terms "brand" and logo" are often used interchangeably. But though a logo
can be the symbol of a business, it is not the entirety of a brand. In fact,
creating a logo is just one small step toward developing a strong brand identity.
(https://blog.hubspot.com/agency/develop-brand-identity)

CHECK YOUR UNDERSTANDING

DIRECTIONS. Brainstorm your brand. Describe your kind of brand to want in the
future. Answer the following questions in making your brand. Write your answers on
your answer sheet.
1. Who are the people you want to appeal?
(What is the target market for your personal brand? Is it primarily your buyers? Or
you are targeting your future ideal employers? What are some of the characteristics of
your market? For example, how old are they, are they conservative or liberal, what
other brands appeal to them?)
2. How do other people see you now?
(Ask some people who know you to describe the way they see you. What do they see as
your strengths and weaknesses?)
3. What do you want to be known as? (e.g., the person whose X)
(What are the key traits you want people to associate with you? For example, do you
want to be known as the “one-step marketing solutions’ expert?)
4. What’s your style? (e.g., casual, professional, grunge, etc.)
(Write specifics of your current style)
 POST-TEST
Multiple Choice. Read and analyze the statements below and write the letter of the
best answer in your answer sheet.

1. A manager of Venezia hotel must make marketing decisions to help it stand out
from its competition. To make these decisions they must determine all but which but
which of the following is the best?
A. what customers want
B. when customers want their services
C. how to provide services to customers
D. how to persuade customers to patronize the hotel
2. Raven Fredric decides that Lighthouse hotel is going to offer a free Sunday brunch
to weekend guests in an attempt to increase the weekend business. What pricing
approach he is using?
A. Competition pricing B. Cost plus pricing
C. Cost-based pricing D. Penetration pricing
3. When discussing the marketing, what does “product” refer to?
A. The location on which the hotel is built
B. The hotel’s concept
C. The hotel’s advertising
D. The price at which rooms are sold
4. Which of the following is not a category into which promotional activities are
classified?
A. personal selling B. public relations
C. point-of-purchase communication D. yield management
5. It can be a meal or some other tangible item that a hotel or restaurant provides to
its guest. It can also be an intangible service or a hotel or restaurant’s concept.
A. product B. price
C. place D. promotion
6. Is the amount that a hotel charges for its product.
A. product B. price
C. place D. promotion
7. Is the physical location of a business and the site where the reservation for the
hotel is made.
A. product B. place
C, price D. promotion
8. Is the decisions made about how to communicate the product, place, and price of
the hotel. It is made up of several promotional activities.
A. product B. price
C. place D. promotion
9. It is the process of persuading a potential buyer to buy the product designed to be
used as a short-term tactic to boost sales.
A. sales organization B advertising
 C. public relation D. sales promotion
10. It is an agreement between supplier and retailer that grants the exclusive rights
within a specific geographic area to carry the supplier’s product.
A. intensive distribution B. exclusive distribution
C. selective distribution D. Franchising

REFLECTIVE LEARNING
The marketing mix is a significant tool for creating the right marketing strategy and its
implementation through effective tactics. The mix helps in determining which
marketing strategy is right for your organization. It is the first step before you even
create your business or marketing plan. The reason is that your marketing mix
decisions also have an impact on your positioning, targeting, and segmentation
decisions. (https://www.linkedin.com/pulse/importance-marketing-mix-your-
strategy-part-1-warren-a-hill)

Branding is absolutely critical to a business because of the overall impact it makes on

your company. Branding can change how people perceive your brand, it can drive new
business and increase brand awareness.
(https://www.brandingmag.com/2015/10/14/what-is-branding-and-why-is-it-
important-for-your-business/-elizabeth-smith)
You have finished answering the Pre-test. You may request your
facilitator or guardian to check your work. Congratulations and keep on
learning.
DIRECTIONS: As would be Entrepreneur, you are tasked to write down at
least 3 brand names. Your brand name can be the name of your product
or service or business. In each brand names, write a tagline to describe
your chosen brand. Write your answer in the space provided.
BRAND NAME TAGLINE
1.
2.
3.
WORKSHEET: MARKETING MIX 7PS AND DEVELOP A BRAND

1. Create your own logo _______________________________________

2. Make a tagline _____________________________________________

3. Give a description of 7PS of marketing mix of your chosen business.

a. Product ____________________________________________

b. Place _______________________________________________

c. Price _______________________________________________

d. Promotion __________________________________________

e. People ______________________________________________

f. Packaging ___________________________________________

g. Physical Evidence ___________________________________

 ANSWER KEY

PRE-TEST

Profitable Business Viable Business

1. face mask 1. hardware
2. face shield 2. grocery store
3. fish, meat, veggies 3. street food
4. grocery store 4. pharmacy
5. water refill 5. carinderia

ACTIVITY 1
1. TRUE 6. TRUE
2. FALSE 7. TRUE
3. FALSE 8. FALSE
4. FALSE 9. TRUE
5. TRUE 10. FALSE

MAKE MEANING-INTERNET ASSISTED ACTIVITY

1. Customer Management - it encompasses all the systems, processes and
applications needed to manage the customer relationship.
2. Business Opportunity - is a packaged business investment that allows the buyer to
begin a business.
3. Market Demand – is the demand for a given product and who wants to purchase it.
This is determined by how willing consumers are to spend a certain price on a
particular good or service.
4. Company’s Mission - describes a company's function, markets and competitive
advantages; a short-written statement of your business goals and philosophies. A
mission statement defines what an organization is, why it exists, its reason for being.
5. Value Statement - a statement of what your company is, what it stands for, and
what everyone can expect from it.

POST-TEST

1. P 6. P
2. V 7. V
3. V 8. V
4. V 9. V
5. P 10. P

MULTIPLE CHOICE
1. A 4. B
2. B 5. D
3. B
 ANSWER KEY

Activity 1

1. FALSE 4. TRUE
2. TRUE 5. FALSE
3. TRUE

Activity 2

1. Growth 6. Decline
2. Decline 7. Growth
3. Maturity 8. Introduction
4. Growth 9. Maturity
5. Introduction 10. Introduction

Activity 3. MAKE MEANING-INTERNET ASSISTED ACTIVITY

1. Marketing – is the management process through which goods and services move
from concept to the customer.
2. Brand management – is the process of maintaining, improving, and uploading a
brand so that the name is associated with positive results. It involves a number of
important aspects such as cost, customer satisfaction, in-store presentation, and
competition.
3. Mark-up - the difference between cost and the selling price.
4. Market research – is the process of gathering, analyzing and interpreting
information about a market, about a product or service to be offered for sale in that
market, and about the past, present and potential customers for the product or
service; research into the characteristics, spending habits, location and needs of your
business's target market, the industry as a whole, and the particular competitors you
face
5. Franchise – is a continuing relationship in which a franchisor provides a licensed
privilege to the franchisee to do business and offers assistance in organizing, training,
merchandising, marketing and managing in return for a monetary consideration.
Franchising is a form of business by which the owner (franchisor) of a product,
service or method obtains distribution through affiliated dealers (franchisees).

POST TEST

1. A 6. B
2. C 7. B
3. B 8. D
4. C 9. D
5. A 10. B