Principles of

Marketing
Quarter 4 – Week 1: Module 4
Product, Service and Experience
Principles of Marketing – Grade 11
Quarter 2 – Week 1: Principles of Marketing
First Edition, 2020

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Published by the Department of Education – Region XI

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 Senior High School

Principles of
Marketing
Quarter 4 – Week 1: Module 4
Product, Service and Experience
Introductory Message
For the facilitator:
As a facilitator, you are expected to orient the learners on how to
use this module. You also need to keep track of the learners' progress
while allowing them to manage their own learning at home.
Furthermore, you are expected to encourage and assist the learners as
they do the tasks included in the module.

For the learner:

As a learner, you must learn to become responsible of your own
learning. Take time to read, understand, and perform the different
activities in the module.
As you go through the different activities of this module be
reminded of the following:
1. Use the module with care. Do not put unnecessary mark/s on any
part of the module. Use a separate sheet of paper in answering the
exercises.
2. Don’t forget to answer Let Us Try before moving on to the other
activities.
3. Read the instructions carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking
your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are done.
If you encounter any difficulty in answering the tasks in this
module, do not hesitate to consult your teacher or facilitator. Always
bear in mind that you are not alone. We hope that through this material,
you will experience meaningful learning and gain deep understanding
of the relevant competencies. You can do it!

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 Let Us Learn

Welcome to the Principles of Marketing Module Week 1 to 3 on Product,

Service and Experience.

This module is designed to provide a general background for the

understanding of the marketing principles, goals, and traditional and
contemporary approaches to marketing. The learners shall be able to plot
marketing goals and approaches for product or service.

After going through the module, you are expected to:

1. identify the characteristics and distinction of product, service
and experiences;
2. differentiate the features of product packaging and labeling; and
3. discuss the basis of introducing new product development.

Let Us Try
TRUE or FALSE

Directions: Write TRUE if the statement is correct or FALSE if the

statement is incorrect.

_________ 1. Cost, time, quality, and value are key characteristics

of services.
_________ 2. Products and services should be viewed as a
collection of expectations.
_________ 3. Customers need products and services to function as
it conveniently solves their problem or desire.
_________ 4. Product features often meet customer needs.
_________ 5. Services are of greater advantage if its accessible and
durable.

Let Us Study

Once a business establishment has identified a suitable

target market, effective and efficient means of communicating with
the customers is the next step. The company has to consider the
various options unto how each product or service may project to
create an impact in the market. As what has been taken up in the

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previous topics, the necessity to correct means of identifying and
selecting competitive advantage enables the company to focus on
its entire operational activities particularly on its product image,
service offerings and distribution channels. Since competition
dictates business establishments to introduce a newly developed
product or service, the company has to align the 4P’s of Marketing
(product, price, place promotion) in comparison to its competitors
and eventually craft a distinct appeal in the market. The 4P’s of
marketing are elements which allows the organization to maneuver
means to satisfy customer’s needs and wants.

A. PRODUCT, SERVICE AND EXPERIENCE

A product or a good is anything that has a physical attribute

to satisfy a need. The tangibility or physicality of a sproduct
permits the client to objectively measure customer satisfaction.
Products like laptops rely on its product specifications to take an
edge in the market.

On the other hand, service is an organized activity rendered

to satisfy clients’ need for a fee. Services are intangible and are
subjectively measured. During this COVID 19 pandemic, a digital
service provider offering mobile broadband access is frequently
evaluated with its reliability of internet connection to address
heightened demand for online study and work at home setups.

Product and service go hand in hand, as a client uses the

product, his initial experience of using the product will determine
its efficiency and the service provided will conclude if he will
patronize such product or service. The connection of product,
service and experience is absolutely inseparable. To differentiate,
products are those visible items that customers purchase, services
are the activities rendered to a client, while experience is the effect
that influences the client to undergo a certain pleasing feeling or
process.

How can a company maintain its marketable status, and achieve

positive feedback?

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 Product or service labeling, packaging and imparting a
remarkable experience mandates marketability. To fully uphold
such market share, the company has to sustainably enhance and
innovate and be abreast with modification. Thus, sustaining
modernized packaging and product labels will ensure a great
impact in its Product Life Cycle (PLC).

B. PRODUCT PACKAGING AND LABELING

PACKAGING (So and Torres, 2016) is the packaging that

serves to contain and protect, and sometimes, identify and
promote the product.

The packaging of a product has four functions:

1. It contains all the product information, like its brief

description and its weight.
2. It protects the product upon transit from the point of
manufacturing to its display shelf.
3. It stores the product to prolong its shelf life.
4. It presents the aesthetic appeal to the customer.

Among the basic features to consider in deciding of a good

packaging are as follows:

1. Communicative

Packaging should provide the basic information of the

product from its product and/or brand name, content
quantity, and quality of the product. It communicates all
the essential framework of the product. A good example
of this is a sexy female body statistic of 34-24-34 which
exemplifies the notion of the Coca-Cola 1-liter bottle. It
has gained its identity and popularity among the
beverages in the market.

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2. Protective

Product packaging serves as the protection of the product from

damage upon transfer from one place to another. It also serves as
its storage which preserves from sun, rain, insect or even dust
contamination.

3. Attractive

Customers are more drawn towards purchasing a product with the

products’ aesthetic appeal. Its color, design, size and advanced
package lure and influence the customer to create a demand out
of it.

4. Economical

Part of the product cost is its packaging, Thus, selecting the most
cost-efficient packaging for a product will determine the products
marketability in terms of the price of the product aligned with all
its similar products in the marketplace.

5. Convenient

The physical attributes of the product package like its size and
shape should be appropriate for the sellers to display the product
and for the consumers to keep it in their storage area. The package
design dictates all the products’ comfort of maximizing its ease in
handling and usage.

LABELING (So and Torres, 2016) is a display of information

about a product on its container, packaging, or on the product
itself.

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There are factors to be considered in determining a product label.

1. Legal Requirements

The law mandates several product label

requirements, like for instance of the food product
labels, it must necessarily contain the name of the
manufacturer, place of origin, net content, date of
manufacturing, expiration date and the nutritional
value table. Like the Philippines Argentina Hot &
Spicy Meat Loaf Ham 170g.

2. Attract the Customer’s Attention

Thorough study is done in deciding on

the label’s material, shape, size, color,
layout and textual content. Similar
substitute products among competitors
are being considered prior to finalizing
label design, since it inaudibly
represents the entire business
establishment in its present market
share. Instant coffee mixes like the Jimm’s 7 in 1 Coffee in the
market took its leap from just merely offering one mixture content
and evolved into various combinations to suit consumers’
preference.

3. Marketability

Marketability is the capacity of a product to

be sold in the market. To earn customer
trust, manufacturers often include other
certification requirements to cater with
various target market, like the Halal seal
printed on the Swift Chicken Franks
package to conform with the Islamic
Dietary Law.

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C. NEW PRODUCT DEVELOPMENT

New product development is announcing a new product either to

replace the existing obsolete products or to introduce a new
additional feature fused in to alleviate customers’ expectations and
satisfaction. Creating a new product may require several steps to
achieve desired results. Usually the business firm conducts a
thorough Strength, Weakness, Opportunity and Threats (SWOT)
Analysis to weigh the current status of the market in terms of its
competition level and market trends. This strategic analysis allows
the company to reaffirm its market share in the existing market
segment. An example is the GMA Network who is establishing its
steadfast foothold on achieving the 70 years of existence in the
national commercial broadcast television and radio network here
in the Philippines. They usually participate in various TV ratings
surveys to measure the percentage of TV households tuned in
within a given time. Thereby, it confirms their overall strength and
possible areas to reach out with their network coverage.

Presented here are caselets and the reasons behind why do

business establishments introduce new products in the
marketplace (So and Torres, 2016).

1. To defend its market share

The Philippine Long Distance Company (PLDT) has

dominated and still dominates the Philippine telecommunications
market with a market share of 63.4% against its closest and
fiercest competitor Globe Telecom, with 36.6% share. When Globe
Telecom launched free Facebook access in October 2013, PLDT
had to innovate its own services by offering not only free Facebook
access, but free mobile internet as well. It had to respond quickly
to defend its market share.

2. To position ahead of competition in a market segment

Filipino women have been using feminine hygiene soaps and

washes for many years. Sensing that similar products would
eventually be demanded by men, Elev8 Trading and Marketing

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Corp. launched Freshman Masculine Wash in June 2010. Since
then, other masculine hygiene wash brands have been introduced
into the market, e.g. Naturacentials, distributed locally by Alliance
in Motion Global.

3. To establish a foothold in a future market in the future

Up until now the late 1980’s, Filipinos had been drinking tap
water. Recognizing public perception that tap water was unsafe for
drinking. Metro Pacific Corporation in 1990 launched Wilkins
Distilled Water, the first bottled water in the country. Being the
first mover in the non-existent market, Wilkins immediately seized
control of the market. In 1999, however, in order to reduce home
office debt, Metro Pacific Corporation had to sell 100% of its
interest in Wilkins to La Tondeña Distillers, Inc. At the end of 2013,
the Philippine bottled drinking water industry had ballooned to
P66.4 billion, with 94 competing brands.

4. To take advantage of strengths in product distribution

Being a 125-year company, San Miguel Corporation (SMC)

has built and cultivated an extensive distribution network
consisting of almost all of the country’s supermarkets, groceries,
bars. restaurants, convenience stores, and sari-sari stores. This
product distribution strength has permitted the company to
successfully develop and launch its many different coffee brands,
San Mig Original, San Mig Sugarfree Mild, San Mig Sugarfree
Strong, and San Mig White. Because SMC has lock-out
arrangement with some of these retail outlets, the company has
likewise been able to restrict the distribution of many competitors’
brands.

The New Product Development Process

Step 1: Concept / Idea Generation

This initial stage is a creative process of coming up with

concepts wherein techniques in identifying and understanding the
problem/need, researching established solutions, brainstorming

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and ideation, attribute listing, forced relationships, morphological
analysis / idea structure and mind mapping are applied to produce
new product ideas.

Step 2: Concept / Idea Screening

In this stage, the generated ideas in the initial stage are then
filtered using predetermined criteria to select good ones and drop
unsound ones.

Step 3: Concept Testing and Verification

All the selected product ideas are then made available in

public to target market in order to derive data of consumers
acceptability, believability and purchase intent.

Step 4: Business Analysis

This stage lays out probable sales forecast of the new

developed product. Relative costs and potential profitability are
then calculated.

Step 5: Product Development

All product details and other relevant documentation are

forwarded to manufacture for production. Marketing plans are
then finalized and prepared for the product launch.

Step 6: Market Testing

The new developed product is then marketed in a particular

geographical location to determine whether there are necessary
attribute modifications, positioning, pricing, advertising and
promotions. All customer drawn feedback are dealt with
accordingly in order to facilitate final alterations.

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Step 7: Product Commercialization

In this final stage of the process, the new product is

launched. This stage involves identifying all reliable suppliers
stated in the supply chain management in order to facilitate the
shipping, delivery and payment of launched product.

Concept / Concept / Concept

Idea Idea Testing and
Generation Screening Verification

Business
Analysis

Product Product
Market Testing
Commercialization Development

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 Let Us Practice

Instruction: Identify whether it is a product, service or experience.

Write a check on the table provided.

No. Description Product Service Experience

1 Haircut
2 Car repair
3 Toys
4 Furniture
5 Cozy ambiance
6 Medical check-up
7 Mail delivery
8 Original themes and
décor
9 Mouthwatering
presentation
10 Bicycle

Let Us Practice More

Directions: Read carefully the following activities and answer the

following questions asked for.
Activity 1: Based on the table above: How does each item differ
from each other? Explain.
Activity 2: Choose 1 product and briefly relate the basic features
of its product package to a good packaging: Milo Energy Drink,
Silver Swan Soy Sauce, Surf Powder Detergent & Datu Puti
Vinegar.

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 Let Us Remember

I. FILL IN THE BLANKS

Instructions: Complete the following statements. Write the word/s
that would complete the given statement.

1. A persuasive ___________________________ provides

customers with details about its features and benefits.
2. ____________________ must communicate on how to use,
transport, recycle or dispose of the product.
3. In the __________________________________________________,
established targets, selecting products and setting of final
product specifications are accurately reflected.

4. The _________________________________________ of the

product development process is gearing up for a full-scale
production, distribution, and promotion of the new product.

5. In concept testing stage, it is important to identify the

_________________________ for the company to direct its
resources to those customers with high potential for sales
growth, interest in the product and loyalty to the brand.

Product Development Stage Product Commercialization

Product Package Legal Requirements
Product Label Target Market

Let Us Assess
MULTIPLE CHOICE.

Directions: Read each question carefully and choose the letter of

the best answer. Write your answer in the space provided before
the number.

______1. Which of the following is NOT a purpose of packaging?

A. It protects the product.
B. It provides basic information.

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 C. It holds the product.
D. It lessens product cost.

______2. Which of the following is NOT an example of a service

business?
A. Education C. Hardware
B. Logistics D. Transportation

______3. Which of the following do not have a good product label?

A. Loaf bread with best before date
B. Bottled water with Chinese language sold in India
C. Chocolate bar with nutritional facts.
D. Soy sauce with the amount of weight content.

______4. Which of the following statements are/is NOT TRUE about

product, service and experience?
A. Customer experience is the interaction of the customer
with the product or service in a business establishment.
B. Customer service is providing the required assistance to
the customer.
C. Legal consultation is an example of a product.
D. A mobile phone is an example of a product.

______5. Which of the following statements are/is NOT TRUE

about creating product label?
A. A product label must indicate units of measurement as to
its size, quantity or weight of the product to ensure that
the amount in the package is never less than what is stated
in the net contents.
B. Indicating the product identity name on the product label
is optional.
C. Choosing the right color scheme of the product label
design will be interesting to the customers.
D. Providing vital information in the product label, such as
the nutritional information, allows the customer to easily
pick the product.

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 Let Us Enhance

Instruction: Identify at least 2 similar products in the marketplace.

Make a product comparison table for you to choose which product is
best for you. A sample product comparison table is presented below.
Make your own original version of a laptop product comparison
table.

Samsung Galaxy S20 Apple iPhone 7

Price ₱ 29,500.00 ₱ 26,518.00
Operating Android iOS 10
System
Processor Speed: 2.73 GHz Type: Speed: 2.34 GHz Type:
Octa-Core Quad-Core
Display 3200 x 1440 (Quad HD+) 1334 x 750
Size
Internal RAM: 8 GB ROM: 128 GB RAM: 2 GB ROM: 128 GB
Storage
Camera Front: 10 MP Rear: 64 MP Front: 7 MP Rear: 12 MP
Battery 4000 mAh 1960 mAh
Capacity

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 Let Us Reflect
In this COVID-19 pandemic, global markets are severely disrupted.
Businesses are forced to explore innovative solutions to overcome the growing
negative implications of this unprecedented crisis.

Business environment are affected, and few had close because of this
pandemic situation. Due to various quarantine measure imposed by the
government. The existing business continuity plans may not be enough to
address the fast-changing variable presented by COVID-19 pandemic.

Reflective Question: In this pandemic situation, how will you validate

customer feedback on your new developed product? Explain

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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 15
Let Us Assess Let Us Remember
Multiple Choice
Fill in the blanks.
1. D. It lessens product cost. 1. Product Package
2. C. Hardware 2. Product Label
3. B. Bottled water with Chinese language sold in India 3. Product Development Stage
4. C. Legal consultation is an example of a product. 4. Product Commercialization
5. B. Indicating the product identity name is optional. 5. Target Market
Let Us Practice More
Activity 1: Based on the table above: How does each item differ from each other? Explain.
Answer: the learner is expected to answer the different characteristics of product, service and
experience.
Activity 2: Choose 1 product and briefly relate the basic features of its product package to a
good packaging: Milo Energy Drink, Silver Swan Soy Sauce, Surf Powder Detergent & Datu Puti
Vinegar.
Answer: the learner is expected to identify the basic features of a good packaging.
Rubrics for Grading the Essay:
5- If the paragraph consists of 5 or more sentences with correct and complete information.
4- If the paragraph consists of 3 to 4 sentences with correct
information.
3- If the paragraph consists of 2 to 3 sentences with correct
information.
2- If the paragraph consists of 2 sentences with correct
information
1- if the paragraph consists of only one sentence with correct information.
Let Us Practice Let Us Try
No. Description Product Service Experience
1. TRUE
1 Haircut P
2. TRUE
2 Car repair P
3. TRUE
3 Toys P
4. FALSE
4 Furniture P
5. FALSE
5 Cozy ambiance P
6 Medical check-up P
7 Mail delivery P
8 Original themes and décor P
9 Mouthwatering P
presentation
10 Bicycle P
Answer Key
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Let Us Enhance
3 points 6 points 8 points 10 points
Writing Writing Writing demonstrates Writing demonstrates
demonstrates demonstrates a general reflection an in-depth reflection
lack of a minimal on the selected topic, on the selected topic,
reflection on reflection on including a some including supporting
the selected the selected supporting details details and examples.
topic, with no topic, and examples.
details. including a
few
supporting

Depth of Reflection
details and
examples.
Writing does Writing Writing includes the Writing surpasses
not include includes a few required components the required
the required components of the selected topic. components of the
components of the selected selected topic.
of the selected topic.

Required
Components
topic.
Information Information Information clearly Information clearly
has little to do clearly relates relates to the main relates to the main
with the main to the main topic. It provides 1-2 topic. It includes
topic. topic. No supporting details several supporting
details and/or and/or examples. details and/or

Quality of
Information
examples are examples.
given.
Writing Writing is Writing is clear, Writing is clear,
unclear, unclear, and concise, and concise, and well
disorganized thoughts are organized with the organized with the
thoughts. not expressed use of excellent use of excellent
Make little to in a logical sentence/paragraph sentence/paragraph
no sense. manner. structure. Thoughts structure. Thoughts

Structure &
Organization
are expressed in a are expressed in a
logical manner. logical manner.
There are There are There are less There are no spelling
numerous spelling or spelling or grammar or grammar errors of
spelling or grammar errors of writing writing reflection.
grammar errors of reflection.
errors per writing
page of reflection

Grammar
writing
reflection
 References

So, R. C & Torres, O. G. (2016). Principles of Marketing.

Philippines: Vibal Group, Inc.
Business-Marketing Learning Materials for Marketing Insurance
and Business. Features of Good Packaging. (n.d). Retrieved
July 20, 2020, from
https://marketinglord.blogspot.com/2012/06/features-of-
good-packaging.html
http://www.bworldonline.com/content.php?section=Technology
&title=globe-subscribers-get-free-facebook-access-for-3-
months&id=78581
http://www.canadianinquirer.net/2014/09/27/globe-to-bring-
back-free-facebook-promo-starting-next-week/
http://www.lactacyd.ph/about-lactacyd
http://www.vintersections.com/2010/08/launch-of-freshman-
masculine-wash.html
http://www.joyceblonde.blogspot.com/2014/06/perfect-white-
perfect-white-is-skin.html
http://www.firstpacific.com/media/normal/15911_ep990527.pd
f

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