MARKETING

MIX
At this stage of your entrepreneurial journey, you have
already learned the following entrepreneurial activities:

1. Identification of the target market segment of proposed

business.
2. Evaluation of the factors influencing the behavior of
consumers.
3. Conduct research work and gathering sufficient and
relevant data.
4. Preliminary conclusion on the type of buying behavior
exhibited by the target consumers.
What is MARKETING MIX?

Marketing mix simply refers to a mode,

means, or tool used by the entrepreneur to
position the product in the target market
segment to efficiently and effectively deliver
it to the consumers and to convince them
about the benefits that they will derive
from buying the product.
7Ps in the
Marketin PRODUCTS PLACE

CUSTOMER
POSITIONING DRIVEN PRICE
STRATEGY

PACKAGIN
PEOPLE PROMOTION
G
 PRODUCT
It refers to the tangible good or intangible service
offered by the business to the target consumers.
For emphasis, the two basic entrepreneurial
tenets relative to product are as follows.
1. The product is only produced once there is
an existing need or want.
2. The product must satisfy the need or want
better than the competing products.
• Information about consumers’ tastes,
preferences, perceptions, and priorities has
significant contribution to the design of the
product.

• It is the nucleus of the marketing mix. Once the

product fails to satisfy the needs and wants of
the consumers, the other Ps may no longer
essential in the buying decision.
What is product mix?

Product mix is where they make different

products or services available to the
consumers on top of the primary product.

Some experts call this product strategy as

differentiation strategy.
 PLACE
Place simply refers to the place where the target
consumers are.
The entrepreneur must establish his business or product
in the most strategic place or location.
 PRICE
The concept of pricing relative to the marketing mix can be viewed
from two opposing perspectives, namely, the perspective of the
entrepreneur who produces the product and the opposing
perspective of the consumers who ultimately buy the product.
Variables that highly influence the setting of prices of goods or
services.

1. Availability of the competing products

• When the supply of the competing products is high, the
price of the product is usually low.

2. Cost of making the product

• Cost refers to the amount spent by manufacturer in view
of the expected benefits.
• Three elements of cost

a) Direct labor refers to the wages paid to the workers

who are directly involved in manufacturing the product.
b) Factory overhead includes indirect materials and labor
and other expenses like the cost of light, water, fuel or
machinery maintenance.
c) Direct materials pertain to the materials that form part
of the finished product.
3. Type of Product
• Products are broadly classified into industrial products
and consumer products.
a) Industrial products are used as raw materials of other
manufacturing entities.
b) Consumer products are used and consumed by
individual consumers.

4. Presence of substitute products

• The presence of substitute products is a threat to the
primary product.
• Substitute products basically set the limit to the selling
price of the primary product.
5. Stages of the product market
• Introductory, Growth and Maturity Stage

Introductory Stage

-may adopt the price skimming approach in which the

new product is highly price when introduced in the market
but is gradually decrease as competitors increase.

-may also adopt price penetration approach in order to

build a well founded consumer base.
Growth and Maturity Stages

• May adopt the commonly used pricing strategy which is

cost-based model, in which the price is simply equal to
the cost plus the desired margin.

Decline Stage

• The product experiences a decrease or negative growth

in sales.
6. Demographic profile of the target consumers
• This depends on the economic status of the consumers
• The pricing strategy may be completely different when
the income of the target consumers is merely enough to
sustain the basic needs of the family.
• The 2 pricing strategies used by retail businesses
include psychological and discount pricing

Discount pricing
• To keep up the competition, recreate interest in product
and get rid of old stock.
Psychological Pricing
• Promotional pricing- products are sold at a lower price
in limited temporary period.
• Odd or even pricing- products are sold at 99.95 pesos or
199.95 pesos appear cheaper compare to the product
with prices end in 0.
• Prestige pricing- products are purposely sold at higher
price in order to create a superior image than the
products sold at lower price.
 PROMOTION
It refers to the mode of conveying the presence and
attributes of the product to the target consumers.
Promotion utilizes the most appropriate media to reach the
consumers. These include the following:

1. Advertising
advertising the products in the following forms:
a) Television or radio commercials
b) Print advertisements
c) Online advertising
d) Packaging ads.
2. Publicity
It is another way of promoting the product or service to
the target consumers through media coverage.

3. Personal Selling
It involves a salesperson who has personal or direct
contact with the perspective consumers.
The salesperson is in competitive position to influence
the consumers.
4. Sales Promotion
It aims to influence the target consumers to buy the
product or avail of the service now and not tomorrow. This
includes giving of discounts, coupons, cash rewards and
gift certificates.

5. Direct Marketing
It is undertaken through the Internet.
It is convenient both for the entrepreneur and the
consumers. They can choose from a wide range of product
selection and buy the product anytime and anywhere.
 PEOPLE
People refers to individual employees or workers who are
directly involved in the production, marketing, and sale of
the product service.
Hence, the entrepreneur must be sure to hire the right
person for the position.

Right means that the educational qualifications and

expertise of the person to occupy the position match the
specifications and requirements of the job.

Big businesses have an edge over small ones because they

can offer the people a better pay and benefits, which
commonly translate to better work performance.
 PACKAGING
It refers to the process of putting the product in a package
or container. The basic purpose of packaging is to protect
the product from spillage, damage or spoilage and it also
can affect the impression of the consumer to the product.
 POSITIONING
Positioning as an element in the modified model of the
marketing mix, refers to the place occupied by the product
in the mind of consumers.
It is the marketing strategy that defines the target
consumers.
INTEGRATED MARKETING
MIX
The different categories of Ps of the marketing mix are not
usually applied separately or independently. Rather, the
different elements of the marketing mix blend
harmoniously in order to influence the demands of the
target consumers.

The mixture of different Ps to position the product in the

market is technically called integrated marketing mix.
Based on the customer-oriented perspective, the 7Ps may
be represented in a customer-driven strategy as follows:

1. Customer satisfaction for the product

2. Customer convenience for place
3. Customer cost lowered
4. Customer information for promotion
5. Customer quality assurance for people
6. Customer safety for packaging
7. Customer decision for positioning