2 types: Goods & Services 3.

Benefits
● Goods - What’s in it for the consumer
- Tangible - Similar to core product
- 2 types: Consumer goods and Ex. Safe for children
Industrial goods
● Services If same products have the same core benefits
- Not tangible how do they differ? Value Proposition
- 2 types: Consumer services Value proposition
and Industrial services - is the set of benefits or values a
company promises to deliver to
Levels of product consumers to satisfy their needs. Is a
1. Core product clear statement about the outcomes
- The satisfaction you get from that an individual or an organization
the product from
- This isn’t tangible it’s from Product and service decisions
experience Product attributes→ branding → Packaging →
Ex. car- transport for buyer, labeling→ product support services
pizza- food
2. Actual product
- Brand name, quality level,
packaging, design and features
Ex. how the car looks like, the Price
kind of pizza - Amount of money charged in
3. Augmented exchange of having/using the product
- Additional consumer services
and benefits Pricing strategies (cost based)
Ex. coupons for repair, ● Cost based
warranty, delivery, customer 1. Mark- up pricing
service, financing - This is pricing strategy where a
standard percentage based on
Product Strategy cost is adopted
- Roadmap of the product outline - Cost based
- End to end vision of what you want the ➔ Unit cost = VC +
product to become (FC/no. Of unit) where:
VC= variable cost, FC=
fixed cost
What products must have? ➔ Variable cost- these are
1. Features expenses that vary in
- What the product attributes are direct proportion to the
- Physical characteristics quantity of the product
Ex. mosquito repellant- No harmful Ex. ingredients for
chemicals and allergens hotdog
2. Advantages ➔ Fixed costs- these are
- What does the product expenses that do not
attributes do vary with production
Ex. Hypoallergenic output. Ex. rent,
 electricity, salary of
workers
➔ 1.) PMV= UC x %
mark-up
➔ 2.) Markup price = UC +
PMV
(PMV= peso markup
value, UC= unit cost)
2. Target profit pricing
- Is a pricing straegy where
prices are set towards attaining
a satisfactory
➔ Step 1: TPP = UC + ( (target ROI% x
I)/ no. of units)
(ROI= rate of investment, I =
investment, UC= unit cost)
Challenge of future lasallian entrepreneur:
Must be priced
Price = cost + price
Break even is when profit is 0
Place/ channel distribution
- How to distribute the products
- Efficient and effective distribution is
important to meet overall marketing
objectives and profitability
- ● Segmentation - different segments of
Place - where the product is distributed
Channel distribution - how the product is sent
to the consumer
2 types of channel distribution
1. Direct
- Shortest way to the consumer
- Direct from manufacturer to
consumer which gives
manufacturer complete control
over their product.
- Higher cost
Ex. Apple products, Car wash
2. Indirect
- Involves distributing your
product by the use of
intermediary
Types of intermediaries
- Set of independent organizations
involved in the process of making
product or service
● Retailer- straight for producer/
manufacturer. Directly sell to end user
● Wholesaler- buy in bulks. Divi. sell to
smaller quantities
● Distributor- buy in bulks but one brand,
exclusivity
● Agent- acts as representative in a
company
● Manufacturer- Producer
Why use intermediaries?
● If you want to consider larger market.
Market penetration. Also if your
product is perishable, so it depends on
the nature of your product.
● Geography - customers may be too
far.
● Consolidation of small orders into big
large ones
● Better use of resources elsewhere
● Lack of retailing expertise
the markets can be best reached
distribution channels
Distribution levels
1. Producer to consumer
2. Producer to retailers to consumer
3. Producer to wholesaler to retailer to
consumer
Distribution strategies
1. Intensive- common products. Easy to
replenish. Used commonly to distribute
low priced product or impulse
purchases. Usually everyday products
 2. Selective - limited outlets in
geographical area. Cars
3. Exclusive - expensive or costly
products. Single outlet. Not readily
available to everyone. Direct
distribution. Apple products.
How to decide?
❖ If a manufacturer decides to adopt an
exclusive or selective distribution
strategy they should select reputable
intermediaries experienced in
distributing
Product
● firm's goods or services they are selling.
This includes not only physical unit, also
package, warranty, and brand and
company image.
Price - price is the amount of money charged
and/or the sum of values that consumers
exchange for the benefits of having or using the
product.​
Place/Distribution: How a product will be
distributed and how it flows from producer to
customer. Wholesalers link the producer of the
goods to the customer.
Promotion: different elements that help increase
the sale of the product. Examples: advertising,
sales, public relations.
Promotion
● Element in an organization’s marketing
mix that serves to inform, persuade, and
remind the market about the
organization and/or its product
● Tells consumers about a product and
persuades them to buy it
● To increase sales
Promotional strategy
1. Creating and developing a brand image
2. Encouraging wholesalers and retailers to
stock your product
3. Reassuring consumers following a
problem with product
Strategically communicating the relevance of
the product through promotional tools
Promotional mix
● Specific blend of advertising, public
relations, personal selling, sales
promotion and direct marketing tools
that the company uses to persuasively
communicate customer value and build
customer relationships
1. Advertising
- Any paid form of non-personal
presentation and promotion of
ideas, goods, or services by an
identified sponsor
Ex. Broadcast, print (newspaper),
internet, outdoor (billboard,
transportation)
2. Sales Promotion
- Short term incentive to
encourage the purchase or sale
of a product or service
Ex. Discount, coupons, displays
(showroom), demonstrations
(samples)
3. Public Relations
- Involves building good relations
with the company’s sales
Ex press release, sponsorship
4. Personal selling
- Personal experience by the firm’s
sale force for the purpose of
making sales and building
customer relationship
Ex. Trade shows, sales
presentation
5. Direct marketing
- Direct connections with carefully
targeted individual consumers to
both obtain an immediate
Ex. Brochures, telemarketing,
kiosk