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ENTREPRENEURSHIP
QUARTER 1– WEEK 7
MODULE 8: Developing Marketing Mix: Place and People

MELC: Describe the Marketing Mix (7Ps) in relation to the business

opportunity vis-à-vis: Product, Place, Price, Promotion, People,
Packaging and Positioning.

Prepared by: EMERENCIANA H. SALAPARE

SHS Teacher II
 OVERVIEW
“Location. Location. Location.” This is the often-recited mantra of salespeople who want to
have the best access to their customers. Although finding a good location proves to be
challenging, even more challenging is maximizing the potentials of that location.
People play a crucial role in the success of the enterprise also and they are the lifeblood of
the enterprise. In this module, we will be discussing the importance of these two Ps in the
marketing mix.

LESSON 8: Developing Marketing Mix: PLACE AND PEOPLE

Place

No matter how great a product or a service is, if customers cannot buy it then it is useless. As
an entrepreneur see to it that the product or service is made available to the target market - on
ground or online or both, especially in this time of pandemic. And this is the role of the place
in the marketing mix.

Initial Location Screening. In finding a good location, one needs to consider the following:

1. The number of customers residing or working in the area, and the number of
customers who frequently pass through the area.

2. The density or number of customers per unit area.

3. The access routes to alternative locations and their traffic count in those routes.

4. The buying habits of customers or where they buy, at what time and how frequent.

5. Locational features such as parking spaces, foot access, creature comforts, and the
like.

In addition to the above factors, consider the following as the final choice in determining
good location.

1. Image and location conditions. This refers to the physical look of a location,
sanitary conditions, crime, safety levels, and reputation of a location.

2. Exact fit to target customers. Is the location traffic generally composed of your
target customers?

3. Clustering of competitor establishments. This oftentimes results in drawing a

bigger market to the location.

4. Future area development. Watch out of signs of development like a construction

boom or a new shopping mall nearby.
 5. Fiscal and regulatory requirements. An entrepreneur would want to set up shop in a
town or city with low tax rates, good governance, excellent infrastructures and great
public services.

People

People are the most important in the marketing mix, for they are the one selling and pushing
the product. People are the regular contact points between the enterprise and its market.
Without people all the other Ps will not complete a successful marketing formula.

The marketing efforts of people are organized at four levels:

1. To create customer awareness. You outsource the people from advertising agencies,
events, management outfits, call centers, and telemarketers.

2. To arouse customer interest. Build in-house capabilities by hiring market

researchers, brand managers, salespeople, public relations officers, websites writers
etc.

3. To educate customers as they evaluate their buying choices. Collaborate or enter

into partnerships with principals, distributors, dealers, and industry associations.

4. To close the sale and deliver the products. Demands that the product be available,
adequate, acceptable, and affordable. Availability means that the enterprise has the
goods or services on hand. Accessible means that the customers can easily get the
product from their usual buying places or the products can be conveniently delivered
to them. Adequate means the product meets the quality and delivery specifications of
the customers. Acceptable means that the customer is convinced by the selling points
of the products. Affordable means the price and payment terms are right.

The organizational modality to educate the customers, to help them in their decision making
process, and to close the sale would depend on four variables

1. Is there a need for high contact especially this time of pandemic or will low contact be
sufficient?

2. Is there a need for high accessibility? If so, then the enterprise will requires
distributors, dealers, branches, or even resellers to expand their reach.

3. How heavy or lights is the transaction cost? High transaction cost products need new
competent people to sell them.

4. Does the customers need a lot of sale servicing and after-sales servicing?

An entrepreneur must make the right choice about the very best location or place for the
customer to receive essential buying information on the product or service needed to make a
buying decision of the people.

DEVELOPMENTAL ACTIVITY
My Business Venture Location Analysis!
Directions: Based on the business venture or enterprise you came up with and has chosen to
pursue it:
1. Do a comparative analysis of at least two of your competitors in two different
locations. Example: your business venture is to put up a barber shop, then study and
observe two competing barber shop s in separate locations.
2. Based on your observations. Answer the questions below:
 Which of two competitors you have are doing better? Why?
 Which of the two has more attractive physical spots? Why?
 What locations do you think contains more customer profile?
3. Out of the two chosen locations by your competitors, which one would be the best for
your business venture?
4. Present your findings in a clean bond paper.
 WORKSHEET
Part 1. Morse Type
Directions: Read carefully the statements. On the space provided before each number write:
T – if both statements are true
F – if both statements are false
X – if one statement is true and the other is false
___ 1. Place is often-recited mantra of salesperson. Finding a good location is not
challenging to the enterprise.
___ 2. Good location has the access routes to alternative locations. It also features such as
parking spaces, foot access, creative comforts and the like.
___ 3. Image and location conditions is the location traffic. And the exact fit to target
customers refers to the physical look of a location.
___ 4. People are considered as the lifeblood of the enterprise. People sell and push the
product.
___ 5. The first modality is to outsource the people from advertising agencies. The second
modality is to build in-house capabilities by hiring brand managers etc.
Part II. Identify and Explain
Directions: Answer what is being asked.
1. What are the four demands in closing the sale? Explain briefly.
a._________________________________________________________________
___
b._________________________________________________________________
__
c._________________________________________________________________
___
d._________________________________________________________________
__