ENTREP: ORAL RECITATION: MARKETING PLAN

THE MARKETING MIX

- The tool available to a business to gain the reaction it is seeking from its target
market in relation to its marketing objectives
- Refers to the set of actions, or tactics that a company uses to promote its
brand or product in the market (Economic Times)
- Is a selection of marketing tools that include several areas of focus that can be
combined to create a comprehensive marketing plan

 THE CLASSIC MARKETING MIX

- Established by Professor of Marketing at Harvard University, Prof. James
Culliton in 1948
- Expanded upon by Jerome McCarthy, where he incorporated Product, Price,
Placement, and Promotion into a theory of marketing that has been important
to the industry for more than 70 years
- Since then, the theory has been expanded into the 7Ps of marketing
- These are:
1. Product
2. Price
3. Promotion
4. Place
5. People
6. Packaging
7. Process

FUNDAMENTAL QUESTIONS IN UNDERSTANDING MARKETING MIX

1. Why are organizations in business?
- Don’t shy away from admitting that their sole purpose is to make profit
2. When do businesses make those profits?
- It’s when their product or service sells, sells better than others
3. How are businesses able to sell better?
- When the customer connects to their product or service
4. And when does the customer connect to a business?
- When the needs are met
- The customer gets reasons to comes back to the business
“We would like to be the leader in the market through the products and services that
can connect to our customers and satisfy their needs.”

4P’s MARKETING MIX CONCEPT

- Later known as the 7Ps of marketing
- Introduced by Jerome McCarthy in his book, “Basic Marketing: A Managerial
Approach”
- Refers to the thoughtfully designed blend of strategies and practices a
company uses to drive business and successful product promotion
- Initially 4, these elements were:
1. Product
2. Price
3. Place
4. Promotion
- Later expanded by including:
5. People
6. Packaging
7. Process

7Ps OF MARKETING
1. PRODUCT (or Service)
- Your customer only cares about one thing: What your product or service can
do for them
- Because of this, prioritize making your product the best it can be and optimize
your product lines accordingly
- This approach is called “Product-Led Marketing”
 In a marketing mix, product considerations involve every aspect of what you’re
trying to sell
- This includes:
1. Design
2. Quality
3. Features
4.Options
5.Packaging
6.Market Positioning
- There are 5 components to successful product-led marketing that are
important for product marketers to take into considerations:
1. Get Out of The Way
- Let your product or service sell itself
- Focus your marketing efforts on getting consumers to try what you have to
offer so they can learn its value for themselves
2. Be an Expert (On Your Customers)
- Know your customer’s needs and use that knowledge to help communicate
your product’s value
3. Always be Helping
- Position yourself as an ally by creating informative content that meets your
target customers’ needs and they will be more likely to buy from you
 This is also called content marketing
4. Share Authentic Stories
- Encourage happy customers to share their experiences and tell others why
they appreciate your brand
5. Grow a Product Mindset
- Focus on your product before you consider how to sell it
- Invest in development and the product quality will take care of the rest

2. PRICE
- Price can make or break a product/service launch
- The first principle of pricing keeps in mind the value of the product or service
that the customer perceives
- Product pricing is somewhat logical in the sense that you can see tangible
material goods in front of you and you can, with some help, figure out the
approximate cost of the product
- In trading or merchandising firms, those who do “buy and sell” and in
manufacturing firms, those who buy raw materials, process them and sell
finished products, and make use of pricing decisions
- Setting the right price is important for goods or services to sell
- How you set your prices can have a multitude of implications for your business
- If the price is too high, the customer may not be able to afford it
- If it set too low, the company may not be able to make a profit considering
that it is not only the cost of the product that is to be taken into consideration
 - There are also operating expenses, both administrative and selling to be
considered
- The selling price should be able to absorb the cost and the operating expenses
and still give a margin for the company to earn a profit

 COST PRICE
- Is the price that a retailer or merchant has to pay for the goods it is going to
sell
- Has to be spent to produce goods or services before any profit is added
- This is usually computed on per unit basis
COST PRICE PER UNIT= TOTAL COST OF RAW MATERIALS ÷ NUMBER OF
UNITS PRODUCED

 OPERATING COST
- Is the price (per unit) incurred relative to the production and sale of the
commodity
- This is also computed on a per unit basis
OPERATING COST PER UNIT= TOTAL OPERATING EXPENSES ÷ NUMBER OF
UNITS PRODUCED

 SELLING PRICE
- The price at which the commodity is sold per unit
SELLING PRICE= COST PRICE + OPERATING COST + PROFIT

PSYCHOLOGY IN PRICING
- A pricing and marketing strategy based on the theory that certain prices have
a psychological impact
- In this pricing method, retail prices are often expressed as just below a little
less than a round number to make a product appear cheaper and more
attractive to buyers
EX: P99.99

3. PLACE
- The place is all about making your products or services available to the right
customers, at the right place at the right time
- Where will you sell your product?
- The same market research that informed your product and price decisions will
inform your placement as well, which goes beyond physical locations
- Here are some considerations when it comes to place:
a. Where will people be looking for your product?
b. Will they need to hold it in their hands?
c. Will you get more sales by marketing directly to customers from your own
e-commerce website, or will buyers be looking for you on third-party
marketplaces?
d. Do you want to conserve directly with your customers as they purchase, or
do you want a third party to solve customer service issues?

4. PROMOTION
- Part of the marketing mix that the public notices the most
- These are strategies used by businesses to increase sales and increase
awareness of the public about their business and products or services
- Businesses use to increase sales and increase public awareness

5. PEOPLE
- People refer to anyone who meets your customer
- Even indirectly, so ensure you’re recruiting the best talent at all levels – not
just in customer service and sales force
- Here’s what you can do to ensure your people are making the right impact on
your customers:
a. Develop your marketers’ skills so they can carry out your marketing mix
strategy
b. Think about company culture and brand personality
c. Hire professionals to design and develop your products or services
d. Focus on customer relationship management or CRM
e. CRM creates genuine connections and inspires loyalty on a personal level

 The attitudes of staff

 Training of staff
 Internal relations
 The observable behavior of staff
 The level of service-mindedness in organizations
 The consistency of the appearance of staff
 The accessibility of people
 Customer-customer contacts
6. PROCESS
- For the delivery of quality and timely services, it is important to design a
strong process
- Prioritize processes that overlap with the customer experience
- The more specific and seamless your process are, the more smoothly your
staff can carry them out
- If your staff isn’t focused on navigating procedures, they have more attention
available for customers – translating directly to personal and exceptional
customer experiences

- Some processes to consider:

a. Degree of Customer Contact
b. Quality Control Standards
c. Quality assurance

- Some processes to consider:

a. Payment Methods (degree of convenience)
b. Queuing system for customers
c. Waiting Times
 If you get more than one customer complaint about any process, pinpoint
what’s going wrong and figure out how to fix it

 QUALITY
- Meeting the requirements, expectations, and needs of customer is free from
the defects
 QUALITY ASSURANCE (QA)
- Focuses on preventing defects
- It ensures that the approaches, techniques, methods, and processes are
designed for the projects are implemented correctly
 QUALITY CONTROL (QC)
- Focuses on identifying defects
- It ensures that the approaches, techniques, methods, and processes are
designed in the project are followed correctly
7. PACKAGING
- A company’s packaging catches the attention of new buyers in a crowded
marketplace and reinforces value to returning customers
- Packaging is normally designed to: Present your products in the most
attractive way possible
 - It communicates the price and value of your products
- Here are some ways to make your packaging work harder for you:
1. DESIGN FOR DIFFERENTIATION
- A good design helps people recognize your brand at a glance and can also
highlight particular features of your product
- For example, if you’re a shampoo company, you can use different colors on the
packaging to label different hair types
2. PROVIDE VALUABLE INFORMATION
- Your packaging is the perfect place for product education or brand
reinforcement
- Include clear instructions or an unexpected element to surprise and delight
your customers
3. ADD MORE VALUE
- Exceed expectations for your customers and give them well-designed, branded
extras they can use, like a free toothbrush from their dentist, a free estimate
from a roofer, or a free styling guide for their hairdresser

COMBINING THE MIX

- This is the essence marketing:
a. Identifying
b. Anticipating
c. Satisfying customer needs in the most profitable way possible
d. Delivering profits to the organization and value to customers at the same
time
- The marketing manager has to identify the needs of his or her target market
through marketing research and other investigative techniques
- The manager must understand customers’ characteristics and buying habits
- For example: he/she then has to blend the components of the mix to
formulate strategies and tactics by which those needs can be met