SHS

Entrepreneurship
Module 8: Quarter 1 – Week 8
Entrepreneurship
Grade 11/12 Module 8: Quarter 1 - Week 8
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Encarnacion R. Basallo, T-II

Editor: SDO La Union, Learning Resource Quality Assurance Team
Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

ATTY. Donato D. Balderas, Jr.

Schools Division Superintendent
Vivian Luz S. Pagatpatan, Ph.D
Assistant Schools Division Superintendent
German E. Flora, Ph.D, CID Chief
Virgilio C. Boado, Ph.D, EPS in Charge of LRMS
Mario B. Paneda, Ed.D, EPS in Charge of Araling Panlipunan

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II
 Entrepreneurship
Module 8: Quarter 1 - Week 8
 Target

In the previous lesson, you have learned how to recognize the importance of
marketing mix in the development of marketing strategy.
The 7P’s of the marketing mix represent the collection of seven structures that
are significant foundation to be consider in executing and evaluating marketing
strategy.
In this part, you will be exploring the mixed or fused components of marketing
mix so as to reach the marketing target. At the end of this topic, the learners will be
able to describe the marketing mix (7P’s) in relation to the business opportunity vis-
á-vis:

 Product;
 Place;
 Price;
 Promotion
 People
 Packaging; and
 Positioning (TLE_ICTAN11/12EM-Ia-1)

Before we get started, let us try the activity in the next page to
have an insight and will lead us to our current topic.

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 Jumpstart

Try this and good luck!

Activity 1. WHO AM I?

A. Direction: Choose the correct word/s related to marketing inside the box
that best associates the image icon in each number. You can choose more
than one answer. Write it in your Entrepreneurship notebook.

Product Advertisement Seller Delivery

Marketplace Package Business Profit
Price Distribution Goods Endorsing
Shop Wrapping Promotion People
Service Staff Store Service Bagging

1. 2. 3.

________ ________ ________

________ ________ ________
________
4. ________
5. ________

________ ________
________ ________
________ ________

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Activity 2. WORD HUNT

Direction. Find and circle the correct word hidden in the grid that best describe the
given statement below. The words run through horizontal, vertical or diagonal
directions. Copy the grid and answer in your Entrep notebook.

P S F I R P T A R
E R M N Y E T O S
O T I A E T R Y T
P S O C R S F C O
L R A O E K U G C
E L B G Z D E T K
P R O M O T I O N
N W O R C M I X H
L N P O S I T I I

1. It is where the product accessible to the consumer.

2. Workers at the enterprise that deliver goods and services to the consumers.
3. It is the strategy used by businessmen usually in the form of advertisement.
4. It refers to the goods and services offered to the consumers.
5. The amount changed to every goods and services that the customer pays.

Nice try! Did you get a perfect score? If yes, it seems that you are getting
ready to the next level.

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 Discover

Your correct answers in our previous activity lead us the concept on the
different components of marketing mix which often called the 7P’s.

THE 7P’S OF MARKETING MIX

There are seven components that fused together to achieve a successful

marketing goal which is commonly refer as the 7P’s of marketing mix.

Originally, the marketing mix are comprises only four components (4P’s):
product, price, place and promotion.

http://www. marketingteacher.com/marketing-
mix-4ps-and-7ps/

Figure 1. Diagram of 4P’s of Promotional Mix

But in the past years there are three (3) addition components in the transition
of 4P’s to 7P’s namely: people, packaging and positioning also called the extended
marketing mix.

MORE INFO!

The 7P’s of marketing mix was initially designed in 1960 by Jerome McCarthy
in his book entitled Basic Marketing: A Managerial Approach.

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Below is the simple visual model of the 7P’s of marketing mix.

https://www.leadagency.com.au/marketing-mix-best-practice-
effective-examples-of-the-seven-ps/

Figure 2. Diagram of 7P’s of Promotional Mix

What are exactly the components of 7P’s of marketing mix? Let us discuss
the first component.

1. PRODUCT
It refers to the goods or services purchased to provide
benefits and consumer’s satisfaction.

Product can be categorized according to use, durability

and tangibility.

https://www.vectorstock.com/
royalty-free-vector/milk-
product-icon-simple-style-
vector-17297074
CATEGORY OF PRODUCT

A. According To Use
There are 2 classification based on the usage of the products. It is
either consumer goods or industrial goods.

Consumer goods are goods purchased by topmost consumers for

personal consumptions such as foods, toiletries, load, etc.

On the other hand, industrial goods are used to produce another

product or so called for commercial use consumption like computer
accessories, lumber, gasoline, etc.

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 B. According To Durability
Durability can also be classified as durable goods and non-durable
goods.

Durable goods are goods that can be used for long term period. (Ex.
Appliances, motors and vehicles and others)

Non-durable goods are products to consume commonly for short time

uses.
(Ex. Soap, cooking ingredients, foods, etc.)

C. According To Tangibility
These category are classified as tangible goods and intangible goods.

Tangible goods are either durable or non-durable products because of

its physical characteristics (can be seen or touch).

Intangible goods refers to the service/s and activities to provide

consumer’s need or satisfaction.
(Ex. Government services, banking services, insurance, etc.)

Let’s move to the next component.

2. PLACE
It is the process of bringing the product to the
consumer. To do so, a manufacturer acquire passage to
send the products through different chain process called
the distribution channel.

The commonly types of distribution channel can

https://www.vectorstock.com/royalt be described as follows:
y-free-vector/shop-icon-over-white-
background-vector-7152393vector-
17297074

TYPES OF DISTRIBUTION CHANNEL

A. Zero Stage – direct transaction by the manufacturer to the consumer

B. One Stage – the producer sells the product to the retailer and turns it to
the consumer

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 C. Two Stage – this channel is applicable where the products are distributed
over a wide area

Retailer refers to a person who finally sells his/her products direct to the
consumer.

Wholesaler is someone who purchased product in a large quantity in lower

price and sell it to the retailer

Let’s have another the three component in marketing mix!

3. PRICE
It is an amount of money paid by the consumer in exchange
to the product.

Here are some of the factors that may affect the price of a
certain product:
https://www.flatic
on.com/free-
icon/philippine-
peso_1368115#
FACTORS AFFECTING THE PRICE OF A PRODUCT
A. Cost
The price of the product depends upon the cost used in the production.
If the price is lower than the cost, then it fails the progress of the business.

B. Price Objective
Manufacturers may adjust the price higher or lower than its competitor
depending on its market goal. Giving discounts or rebates to the product
is an example of price objective.

C. Legal Or Regulatory Issues

These are laws that control the prices at its highest or lowest value such
as freezing of fixing.

4. PROMOTION
It is a process of communication strategies to persuade
or encourage customers to increase the demand and create
loyalty to the product.

There are some commonly methods of promotional

mix. Let us study each method.
https://www.clipartmax.com/
max/m2H7m2K9b1Z5G6H7/

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 METHODS OF PROMOTIONAL MIX

A. Advertising
It is the most popular paid form means of promotion ideas to persuade
consumers through different medium such as newspapers, social media,
television, etc.

B. Publicity
It is a not paid form of communication by an enterprise which may
consider as public relation. This includes allowing public interviews,
charitable donations, conducting trainings related to your business and
etc.

C. Personal Selling
The most effective way of promoting product to consumers through
direct presentation of the desired product.

D. Sales Promotion
It is designed to encourage consumers through temporary incentives
like giving tokens, serve as a gift, rewards and others.

5. PEOPLE
It is the most significant element in the product and
also in services. People refers to the manpower who
provide support to the products. They are the one who
produce, promote and deliver the goods and services to
the consumers.
(Ex. Factory workers, sales person, customer service
https://www.uihere.com/free-
representatives etc.) cliparts/computer-icons-user-
person-clip-art-people-icon-
1717968

6. PACKAGING
“First impression lasts.” Every consumer are looking how
the product reveal its appearance outside which is one of the
great technique that affects the decision of the consumers to
buy.

There are some techniques to produce packaging. These

https://iconscout.com are unique, functional, safe, easy to remove and promotional
/icon/packaging-
design packaging. Let’s have a brief view of these techniques.

PACKAGING TECHNIQUES

A. Unique Packaging
Packaging design with distinctive appearance better than the
enterprise’s competitor.

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 B. Functional Packaging
It is the easiest way to increase the existing package of the product to
provide comfort and enjoyment of the consumers.
(Ex. Products in squeezable pouch, beverages in a can instead of bottles,
ready to mix eat or cook foods and others.)

C. Safe Packaging
Packaging are designed to be tested and proven to the safety of the
consumers such as tightly sealed chemical products to avoid leak, sealed
caps for medicine to secure the safety of children and many more.

D. Easy To Remove Packaging

The methods of packaging where consumers can easily access to
remove the product without breaking or destroying it. Usually labeled on
the package visible to the consumers like arrows indicating the upper
portion of the product inside the box.

E. Promotional Packaging
Packaging are developed to promote the interest and satisfaction of the
consumers. The benefits and advantages of the product are most written
on the package. Supplement foods and beauty products are some
examples of promotional packaging.

And here is the final component of marketing mix.

7. POSITIONING
This component concerns on how a product is
recognized in the marketplace through the integration of
the 4P’s (product, price, promotion and place.

Examples:
1. A cellphone producer positioning its product as a
value user-friendly device.

2. Fast food chain claims its product to be the cheapest meal provider.

Positioning strategies have several types, here are few examples:

POSITIONING STRATERIES IN MARKETING MIX

A. Position In Advertising
It is very important to determine the needs of your target customer in
order to design appropriate advertisement for your desired product.

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 B. Position In Price
This is how the price of your product compares to the demand of your
competitors.
A high valued products tend to have expensive price that the marketing
producer must price in the larger company rather than smaller one to
avoid price comparison.

C. Position In Sales Location

Reaching your consumer is possible by choosing the appropriate
distribution channel. Place your product accessible and can easily
establish its identity to your target market.
So those are the seven components of marketing mix. With the correct
implementation and blended combination of these, make a perfect desired result of
the business.

Hope that you have gained a lot of knowledge on the 7P’s of marketing mix.
This time let us test you understanding by doing the following exercises. Good
luck!

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 Explore

Exercise 1.

Direction: Study the given product below. Describe its characteristics by checking
the columns under the categories of product. Copy and answer it in your Entrep
notebook.

USE DURABILITY TANGIBILITY

Product Consumers Industrial Non-
Durable Tangible Intangible
good goods durable
1. Ingredients
for baking
cake
2. Life
insurance of
my parents
3. Oven
toaster for
baking
4. Carpentry
Tools
5. Set of
computers for
the shop

Exercise 2.

Direction: Read carefully the given situation in each number. Identify the correct
method used in promotional mix. Write your answer in your Entrep notebook.

________________1. Mila offers 30-minute free access to internet for regular customers
during week end in her computer shop.
________________2. A sales representative of kitchen wares came to your home to
present a demo on their product.

________________3. An electronic company will give cash incentive for those who will
join their contest in the social media.

________________4. A cellphone manufacturer campaigns their brand new feature

cellphones through social media and televisions.
________________5. Cora who is a popular online seller o slimming coffee is invited to a
talk show to elaborate the benefits and other information about her
products

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 Deepen

Hope that you have gained a lot of knowledge on the 7P’s of marketing mix. This
time let us test you understanding by doing the following activity! Good luck!

Activity 2. Marketing Plan Making.

During the enhance community quarantine, we are required to stay at home.

This time, think of your favorite product found in your home. If you are a
businessman and going to produce new product similar to your favorite one, how
could you make this possible? Use extra sheet for this activity to be attached in your
Entrep notebook

Task 1. Think of your own brand name.

Task 2. Create your own market plan applying the 7P’s of marketing mix.
Below are guided questions to come up your own market plan.
Write it in paragraph form.
Guide Questions:
1. What is the new brand name of your product?
2. What feature/s of your product different from the existing one?
3. Where will you going to sell you product?
4. Where will you position your market place to attract your target
customer?
5. How much is the possible price? Is it higher or lower? Why?
6. Who are your target customers?
7. How will you promote your own product?

Task 3. For packaging, draw your own version of your new product.

Task 4. Create a short tagline or jingle for establishing the identity of your
product.

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 SCORING RUBRIC FOR THE ACTIVITY

Very Strong Moderate Strong

Strong Evidence
Indicator Evidence Evidence
(2 - 1 points)
(5 points) (4 - 3 points)

Clearly evident what Somewhat evident Unclear what

Product
product/service is what product/service product/service is
being provided. is being provided. being provided.

Pricing structure is Pricing structure is

included and included but does
Price No pricing product
explained why/how not explained
structure.
prices were why/how prices were
determined. determined.
Market place is not
Market place is very Market place is very
Place
convenient for target accessible convenient for
customer. for target customer. target
customer.
Promotional mix Promotional mix Promotional mix
Promotion is clearly brings is somewhat clearly is does not brings
awareness about the brings awareness awareness about
product. about the product. the product.
Selling position Selling position
Position Selling position
in the market is in the market is
in the market is
clearly somewhat
not determined.
determined. determined.

Packaging design shows Packaging design

a quality final result. Packaging design
Packaging shows some quality,
Packaging is eye- package is simple
packaging is simple
catching

Good job! Now you are ready to take the final test for this
lesson.

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 Gauge

Direction: Read each item carefully. Choose the letter of the correct answer and
write it in your Entrep notebook.

For item number 1 - 5. Refer to the choices in the box

A. Packaging E. Price
B. People F. Product
C. Positioning G. Promotion
D. Place H. Plan

____1. Which of the 7P’s of marketing mix bring the product to the consumer.

____2. What is the most effective method to persuade or convince your target
customer?

____3. Which component of the marketing mix is paid by the consumer in

exchange for the product?

____4. The categories according to use, durability, and tangibility falls under what
component of marketing mix?

____5. Which 7P’s affects the decision of the consumer to buy the product by
looking at its appearance?

____6. Which of the following statement best describe the 7P.s of marketing mix?

A. The most significant element in the product and also in services that
provides support to the products.
B. The method of sending the products to the consumers by means of
different distributing channel through.
C. The correct implementation and blended combination of the marketing
mix, may achieve a successful marketing goal.
D. The process of communication strategies to persuade or encourage
customers to increase the demand and create loyalty to the product.

____7. How products are passed on hand to the costumer?

A. By means of promotional package

B. By channels of distribution
C. By means of advertising
D. By public interviews

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____8. Dolor is offering a buy one-take-one package on her new garment
accessories during Christmas season that makes her as the top seller every
year. What method of promotional mix is applied in this scenario?

A. Promotion on Sales
B. Promotion in Publicity
C. Promotion in Advertising
D. Promotion in Personal Selling

____9. Finder Bike Company claims their sportive bicycle as the road’s highest
optimized performer. How are their products recognized this way in the market
place?

A. Promotion by Personal Selling

B. By Sales Market Positioning
C. By Product Distributing
D. By Unique Packaging

____10. What packaging technique pertains to the image below?

A. Safe Packaging
B. Unique Packaging
C. Promotional Packaging
D. Easy to Remove Packaging
(Image: https://www.seton.com/fragile-
labels-this-side-up-fragile-av0112.html)

Congratulation! You have done your part.

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REFERENCES:
Printed Materials:

Habaradas, Raymond B and Tullao, Tereso Jr. S. (2018).Pathways to

Entrepreneurship. Phoenix Publishing House, Inc.

Morato, Edmund Jr. A. (2016). Entrepreneurship. Rex Bookstore, Inc

Websites:

Lauren, Lynn. (2019, February 02). What is Positioning in a Market Plan? Small
Business/Advertising and Marketing/Marketing Plan.
https://smallbusiness.chron.com/used-marketing-sales-23251.html

Tracy, Brian. (2004, May 17). Million Dollar Habits: Entrepreneur Press. The 7Ps of
Marketing Mix (An Excerpt).
https://www.google.com/amp/s/www.entrepreneur.com/amphtml/70824

Chadha, Harshit. (2014, May 13). Market Mix 7Ps.

https://www.slideshare.net/mobile/HarshitChadha/marketing-mix-7-ps-
34642513

Hanlo, Annmarie. (2019, August 13). How to Use the 7Ps of Marketing Mix?-Smart
Insight.
https://www.google.com/amp/s/www.smartinsights.com/marketing-
planning/marketing-models/how-to-use-the-7ps-marketing-mix/amp/

Healy, Sandra, (2013, June). Marketing Module Series:

https://www.google.com/url?sa=t&source=web&rct=j&url=http://publicatio
ns.dyson.cornell.edu/outreach/extensionpdf/2013/Cornell-Dyson-
eb1309.pdf&ved=2ahUKEwjslfqGvf7qAhXPMHAKHUNCAIUQFjAQegQIBhAB
&usg=AOvVaw38tR5m272ZU-nGau_5j2Js

Illustrations:

Gagujas, Marife. (2020). https://drive.google.com/drive/u/0/mobile/folders/

1S9btrWrXxbiDS6xBEJsqkZv1ZGSgRGhR?usp=sharing

https://drive.google.com/drive/u/0/mobile/folders/15ARXDZYv-
wCZ4H9pogpnkoAjOrjrlLSq?usp=sharing

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