Product

Place Promotion
MARKETING
Packaging
MIX Price

People (7 Ps) Positionin

g
 MARKETING MIX

The marketing mix is a significant

instrument in planning and executing
the right marketing scheme through
operative strategies (Hill, 2016). The
assessment of these 7Ps is very
important in the business’ overall
marketing approach.
 1. PRODUCT

A product, according to Martin

(2014), is something that gives
satisfaction to consumer; be it a
need or want. It also refers to the
goods and services offered by
business enterprise to its target
customers.
 1. PRODUCT

This can be a physical item, a service or a

virtual offering. It is manufactured at a cost
and is subsequently made available to the
consumer at a price. Some examples of
tangible products are toothpaste, bread,
and motorcycle parts. Some examples of
intangible products are massage, manicure/
pedicure, and bookkeeping service.
 CLASSIFICATION OF PRODUCTS
Durables have long
1.TANGIBLE
interval between purchase
such as appliances and
Physical item that a furniture.
business enterprise
Non-durables have stronger
offers. Two types are repeat purchases, such as
durables and non- food, soaps, and other
durables. consumables.
 CLASSIFICATION OF PRODUCTS

2. INTANGIBLE

Services are intangible

things provided by
entrepreneurs to satisfy the
customer such as medical
services and transportation.
A successful product has to fulfill a
specific need in the market and it must
be able to do its function as
guaranteed. Whether a need or want, a
product must provide clear statement
to users and potential customers
regarding its benefits and features.
The economic definition of the
word need is something needed to
survive (www.study.com). This
includes things like food, water,
and shelter; things people cannot
live without.
A want, on the other hand, is one step up
in the order from needs and is simply
something that people desire to have,
that they may or may not be able to
obtain. This includes new pair of shoes, a
high-end cellphone or gadget; things
people can live without but still choose to
purchase.
 2. PLACE

Place refers to distribution or the methods

you use for your products or services to
be easily accessible to the target
customers. Also called placement or
distribution, this is the process and
methods used to bring the product or
service to the consumer (Luenendonk,
2020).
 2. PLACE

Your product or service dictates

how it should be distributed
(www.marketingmix.co.uk). An
entrepreneur must establish his/
her business in the most strategic
place.
The place where the businesses situate and
their accessibility are vital influences in
marketing. Accessibility relates not just to
physical approachability but to other means of
communication and contact (Chand, 2019).
Thus, the types of distribution channels used
(e.g. travel agents, middle person) and their
coverage are linked to the crucial issue of
accessibility.
Would you like to run your own business? If
you own a retail shop, for example, the
distribution chain ends with you and you
supply to your customers directly. As a
manufacturer, you can decide whether to sell
your products directly to consumers or to sell
them to intermediaries or middlemen to
distribute them.
 TWO TYPES OF DISTRIBUTION
CHANNELS (MENDIOLA (2017):

1. DIRECT DISTRIBUTION

the type of distribution

where there is direct sale
between the manufacturer
and the consumer.
 TWO TYPES OF DISTRIBUTION
CHANNELS (MENDIOLA (2017):

2. INDIRECT DISTRIBUTION

the type of distribution

wherein manufacturer
utilizes a wholesaler or
retailer to sell his/her
products.
 3. PRICE

Price is the monetary value a

customer pays in exchange for a
merchandise or service. Determining
the right price for your product can
be a bit tricky because of some
factors that we have to consider
(www.marketingmix.co.uk).
A common strategy for beginning small
businesses is pricing their product lower than
their competitors. Your pricing strategy should
reflect your product’s positioning in the market.
The amount should not project your business
as too cheap or too expensive. Low pricing
delays your business’ growth while high pricing
kicks you out of the competition (Acutt, 2020).
Entrepreneurs have the freedom to
select what strategy they will use in
pricing. It can be based on the cost
analysis of the expenses, competition
in the market, and customer demand.
 PRICING STRATEGIES (ACUTT, 2020)

1. COST PLUS

Cost Plus is taking the production

expenses (including labor,
materials and other resources)
and adding up a certain profit
percentage and then the sum will
be the product’s price.
 PRICING STRATEGIES (ACUTT, 2020)

2. VALUE-BASED

Instead of using the production cost as

basis, an entrepreneur can consider the
customer’s perception of the product’s
value. The perception of the purchaser
is dependent on the product’s quality,
the brand standing, and benefits, aside
from the cost factors.
 PRICING STRATEGIES (ACUTT, 2020)

3. COMPETITIVE

You can conduct a survey of the pricing

applied by your competitors on a similar
product that you are trying to sell and
then decide whether to price your
product cheaper, the same, or higher.
You should also monitor their prices and
be able to respond to variations.
 4. PROMOTION

The strategies you use to endorse

your product or service in the
market is called promotion.
Through it, you let potential
customers know what you are
selling (www.marketingmix.co.uk).
In order for you to persuade patrons to
purchase your product, you need to
explain what it is, how to use it, and
why they should buy it. You should
always make your consumers feel that
you can satisfy their needs and wants.
COMMON MARKETING COMMUNICATION METHODS IN PROMOTING
(LUMEN LEARNING, 2020)

• ADVERTISING

is a series of related, well-timed,

carefully placed television ads coupled
with print advertising in selected
magazines and newspapers. An effective
advertising contains a clear message
that is directed to a certain audience and
is done through suitable channels.
COMMON MARKETING COMMUNICATION METHODS IN PROMOTING
(LUMEN LEARNING, 2020)

2. DIRECT MARKETING

refers to direct-to-consumer
mail pieces sent to target
segments in selected
geographic areas, reinforcing
the messages from the ads.
COMMON MARKETING COMMUNICATION METHODS IN PROMOTING
(LUMEN LEARNING, 2020)

3.PERSONAL SELLING

uses in-person interaction to

sell products and services.
This is done by the company’s
sales personnel who are
personally interacting with the
customers.
COMMON MARKETING COMMUNICATION METHODS IN PROMOTING
(LUMEN LEARNING, 2020)

4. SALES PROMOTIONS

are marketing communication tools for

stimulating revenue or providing incentives
or extra value to distributors, sales staff, or
customers over a short time period. Sales
promotion activities include special offers,
displays, demonstrations, and other
nonrecurring selling efforts that are not part
of the ordinary routine.
COMMON MARKETING COMMUNICATION METHODS IN PROMOTING
(LUMEN LEARNING, 2020)

5. DIGITAL MARKETING

is an umbrella term for using digital tools to

promote and market products, services,
organizations and brands. People are now
more dependent on digital communications.
There are several essential tools in the
digital marketing tool kit: email, mobile
marketing, websites, and social media
marketing.
COMMON MARKETING COMMUNICATION METHODS IN PROMOTING
(LUMEN LEARNING, 2020)

6. PUBLIC RELATIONS

is the process of maintaining a

favorable image and building
beneficial relationships between an
organization and the public
communities, groups, and people it
serves. PR is often referred to as “free
advertising”.
 5. PEOPLE

One of the essential elements of the marketing mix

is the people. Everyone who is involved in the
product or service whether directly or indirectly is
referred to as people (www.marketingmix. co.uk).
According to Chand (2019), people are the human
actors who play a part in production of goods and
service delivery and thus influence the buyer’s
perceptions: namely, the firm’s personnel, the
customer, and other customers in the environment.
People are the most important element of any
product, service or experience. Remember,
customers buy from salespeople who they like, so the
attitude, skills and appearance of all staff should be
taken into consideration when hiring employees.
People have an important role in product/ service
delivery, they are relied upon to deliver and maintain
transactional marketing and people play an important
part to have a better relationship with the customers.
Only sales representatives get in touch
with the customers, not everyone. But all of
them have their own roles to play in the
production, marketing, distribution, and
delivery of the products and services to the
customers. Without them, all these other Ps
in the Marketing Mix will not complete a
successful marketing formula.
What you need to understand is that
people are the backbone of the company
(Acutt, 2020) —and that is why you have
to make sure that you only have the right
ones at hand.
The word right in this context implies that the
qualifications and skills of the person to occupy the
position must match the specifications and
requirements of the job. For example, a business
venture needs a marketer to promote the product in
Central Luzon; therefore, the business owner must
hire a graduate of Marketing or Business Course and
not a graduate of a medical-related course. The
technical proficiency must also be given due
consideration.
Finding the right person may also entail
cost to the business because the higher
the standards are, the higher the salary
level will be.
 6. PACKAGING

Your packaging is the gold star of

your marketing mix – it can dictate
how well your strategy is working
(Bouma, 2018). The first thing that
customers see is the product
packaging, it has the ability to catch
or divert their attention in a snap.
Packaging is also referred to as “silent
salesman” by the marketing people because
they believe that it helps in accumulating
bigger sales and returns (Burks, 2020). They
are very beneficial to small enterprises
because they only have few people to
promote their product and/or service
Packaging maintains the freshness and quality of
your product while using vibrant designs to tell your
brand’s story. It also has the information required by
the government like nutritional facts and warnings
that keeps the consumers safe. It also proves
further that you have commitment to transparency
and only provide products that are beneficial to
consumers’ lives. The packaging must also be user?
friendly. It must be easy to open, handle, and store.
Furthermore, packaging will surely appeal to
consumers if it characterizes something that is
significant to them or symbolizes someone they aim
to be. For example, shoppers who have
environmental concerns may choose product
packaged in recycled and/or recyclable materials.
On the other hand, a person who idolizes someone
may select a product because the packaging
includes a photo of his/her idol who inspires
him/her.
 ELEMENTS OF PACKAGING
(METRIXLAB, 2020)

• CATEGORY OR PRODUCT TYPE

The customer should know if

a product is food, non-food,
chemical or etc. It is not
good to confuse them with
your packaging.
 ELEMENTS OF PACKAGING
(METRIXLAB, 2020)

2. BRAND

This will help you make your

product be known to many.
The name of the product is
what the customer usually
remembers.
 ELEMENTS OF PACKAGING
(METRIXLAB, 2020)

3. VARIANT

The packaging should

display the possible
options for the particular
product.
 ELEMENTS OF PACKAGING
(METRIXLAB, 2020)

4. FUNCTIONAL BENEFIT(S)

The packaging should

show what the product
does.
 ELEMENTS OF PACKAGING
(METRIXLAB, 2020)

5. REASON(S)-TO-BELIEVE

The packaging should also

present why the consumer
should find the claimed
functional benefit credible.
 ELEMENTS OF PACKAGING
(METRIXLAB, 2020)

6. EMOTIONAL END-PROMISE OR BENEFIT

The packaging should

also exhibit how the
functional benefit fulfills a
higher need.
 ELEMENTS OF PACKAGING
(METRIXLAB, 2020)

7. CALL-TO-ACTION

The reason why consumers

should buy the product must
also be present in the
packaging.
 ELEMENTS OF PACKAGING
(METRIXLAB, 2020)

8. SIZE, WEIGHT, CONTENT DETAILS, ETC.

The information such as

stated must be shown for
the consumers to know.
Your packaging should tell the
consumer what your product is and
why they should buy it. That’s it. Two
questions only that your product
packaging design has to answer.
Guess our lesson for today by unlocking the word below. Use the
corresponding number of each letter in the alphabet; A is 1, B is 2
and so on and so forth.
 7. POSITIONING

Positioning is a market concept that

outlines what a business should do to
market its product or service to its
customers. In positioning, the
marketing department creates an image
for the product based in its intended
audience.
 7. POSITIONING

For example, a manufacturer of a bag

may position his/her brand as a
budget?friendly brand or the other
way around; a restaurant owner may
position his/her business as a
provider of cheap or expensive food.
The more intense a positioning strategy is,
typically, the more effective the marketing
strategy is for a company. The position of
a particular product or service elevates
the efforts in marketing and helps people
to become buyers and even turn them to
be loyal customers in the future.
There are several positioning strategies
according to Corporate Finance Institute (CFI,
2020). A few examples are positioning by
product benefits, price, quality, and competition.
A perceptual map is used to know how people
perceive a certain brand. The map allows you to
identify how competitors are positioned to
identify the opportunities in the marketplace.
Positioning is simply the definition of a certain
product in the mind of the customers. The
entreprenuer must always describe the
product based from the perspective of the
customers. You must put yourself in their
place in assessing the cost, quality, and
variety of the products you offer.
Given the logos of food chains existing here in Bulacan, try to
analyze their cost and quality, and place them in their corresponding
quadrant in the cost-quality axis.