ENTREPRENEURSHIP

MODULE
Module No.8: Week 8 : First Quarter

TOPIC: Marketing Mix (7P’s)

Learning Competencies
Describe the Marketing Mix (7 P’s) in relation to the business opportunity.
Code: TLE_ICTAN11/12EM-Ia-1
Objectives:
1. Learners will be able to understand business opportunity.
2. Learners will be able to describe the marketing mix (7 P’s) in relation to the business opportunity.

Let’s Recall (Review)

Revisiting the Marketing Mix – A Fun Little Exercise
Ah yes, the Marketing Mix. We all know them, we all love them, but sometimes they slip out of our
consciousness from time to time. Even the most seasoned marketing pros have moments where they
miss the mark on at least one of them. It just happens.
I’ve thought a lot about this lately and came up with a fun little 5-minute exercise that
Entrepreneurs of all skill levels can benefit from to gain a little more perspective on why the 7 Ps are
so essential to keep in mind.
Here’s the instructions for this simple exercise:
1 – Create a simple two-column table with 8 rows in each.
2 – Label the left column “Low-cost Frequent Purchase” and the right column “High-cost One-
Time Purchase”
3 – Label the rows, from top to bottom: Brand, Product, Price, Promotion, Place, #1 Reason I
Bought, Alternate Brand, #1 Reason I Didn’t Buy
4 – Complete the chart as follows, starting with the left column:
• Choose a low-cost item that you buy regularly (Coffee, toothpaste, razor blades, etc)
• List the Brand, Product, and Price you paid in the first three boxes
• List the most recent Promotional piece for that product you saw (commercial, ad, website, etc),
and whether you believe it influenced your choice
• List the Place you made your purchase (7/11, Starbucks, Online, etc)
• List the #1 Reason you bought that particular product (price, quality, taste, etc)
• List a competing brand that would be your #1 choice as an alternate if you couldn’t buy your
preferred item
• List the #1 reason you did not choose that brand
5 – Repeat those actions for the right column, but with an expensive product you don’t buy
often. (Car, Vacation, TV, computer, etc)
***BE SURE YOUR CHART IS COMPLETE BEFORE READING ANY FURTHER, OR YOU
MAY SKEW THE RESULTS***

1 Prepared by: Rebecca N. Cagas

 Let’s Understand

Business Opportunity
Use ‘business opportunity’ in a Sentence
Sentence #1: I was approached by a friend of mine last February 2020, asking if I
was interested in a business opportunity related to the sale and distribution of goods.
20 people found this helpful
Sentence #2: John was presented with a business opportunity by a friend to generate income by
becoming an independent meat shop owner.
14 people found this helpful
Are you thinking of becoming an entrepreneur? Or are you already self-employed and looking
for new ways to earn more? If the answer to any of the two questions is positive, what you actually
need is a good business opportunity. Luckily, the choices are becoming greater by the day. You can
opt for home, online, federal or any other type of business opportunity.
Let’s try to define a business opportunity
A business opportunity is not an easily definable term. For starters, it is often confused with a business
idea. But an idea is just the beginning. We can compare it to a seed.
On the other hand, an opportunity is an idea that has already been thought through. Our seed has started
developing. Of course, that does not happen automatically.
There is a long way from an idea of making a moving company, to the business opportunity of a startup,
and finally to a successful company like bigapplemoving.com. The idea needs a lot of shaping, refining,
researching, and testing before becoming a possible business opportunity, and eventually a prosperous
business.
Let’s avoid the confusion
You might notice that the mentioned criteria sound similar to franchising. In fact, a franchise is a type
of business opportunity, but it is not reciprocal. That means that not every business opportunity is a
franchise.
Many venture opportunities do not imply the continuing relationship between the seller and the buyer
upon the sale. Franchises do require buyers to perform their business operations the way the seller
indicates.
One man’s trash is another man’s treasure
Not all of us have the same perceptions of life and business. What seems like a profitable business
idea to one person might look like a complete waste of time to another.
An idea alone can never be a guarantee for success. It takes a lot of time and effort to turn an idea
into an opportunity. And everybody has their own way of making it work.
Naturally, some ways will prove to be more successful than others, meaning some ideas will turn into
opportunities and others won’t.
Business opportunity classification
Not every business opportunity has the same functioning principle. Let’s take a look at the four most
common types of venture opportunities and their examples:
1. Franchising
It is the best choice for entrepreneurs who do not like experimenting.
They get the business plan already made up and brand recognition is not something they should be
worried about. Some of the most successful examples are 7/11, Dunkin’ Donuts, McDonald’s,
Anytime Fitness, etc.
2. Distributing and dealing
A distributor agrees to sell products and/or services another company makes or
provides. Barns&Noble is a good example of the distribution model.
A dealer is pretty much the same as a distributor, but this person focuses more on the product they are
selling. People selling life insurance or cars are great representatives of a dealership.
3. Network Marketing
A network marketer is a person who strives to recruit other marketers in order to create a network of
distributors. If they are good at what they do, they can earn considerable income through commissions
made by the distributors working for them.

2 Prepared by: Rebecca N. Cagas

People selling Tupperware are the ones who have opted for a network marketing type of business
opportunity.
4. Licensing
Licensing is when you get a license to use a brand name on your products. For instance, if you are
selling T-shirts, leather jackets, etc. with a license from Harley Davidson company to use their name,
that is called licensing.
Some guidelines to follow on your road to success
- Be an enthusiast
- Be completely in the know about the product or service that you are selling
- Research the market before opting for any business
- Contact other entrepreneurs who have bought the same product from the same
- Check if there is some training or seminar you can attend
Now, let us go back to the Marketing Mix (7Ps) but for this time we will discuss them one by one.
What is the 7Ps marketing mix?
Marketing mix is commonly used words in the business world. Marketing mix is the core element of
the business that is designed to achieve the marketing goals. Some of the case, marketing mix is to be
considered as 4Ps, 7Ps or 8Ps planning on the basis of the organizational nature and objectives. No
matter it is but the successful blending of the product, price, place and promotion strategy can ensure
that this blending may enable or not to create a positive response in the final market.
Example of Marketing Mix:
RMF trading corporation produces water purification devices for 100% safe and pure drinking water,
they are producing distinguish product with good quality, charging market skimming pricing, designing
their promotional mix with ads, personal selling and online marketing, developing their marketing
channel through selected dealers and distributor and also ensuring selective distribution for their product.
The given, blending is to be considered as the marketing mix or 4Ps mix of the Water Purifier of RMF
trading corporation.
Product:
Product is anything that can offer in the market to get customer accent and may enable to satisfy
customer needs and wants. A product is the combinations of some features and qualities that can
produce the desired solution for customer’s problems. In marketing mix product also represents various
strategies around the product. A product has five major levels including core benefit, generic product,
expected product, augmented product, and potential product. Marketers should consider all the five
levels of a product when they design any product strategy in their marketing mix strategy.
Place:
Place means the distribution of the product. A marketer should take decisions about How much the
product is available in the final market? (Mass distribution or convenient distribution, selective
distribution, exclusive distribution); Who is responsible to distribute a product? (Dealer, Distributor,
Wholesalers, Retailers); For what marketing intermediaries available the product? (Commission or
Benefit).
Price:
There are two perspectives to define price. On the customer side, They sacrifice price to get or receive
a particular product or service. On the seller’s side, the price is the charging amount to give or sacrifice
any product or service. There are two types of new product pricing strategy (market penetration pricing
i.e. The initial low price to get or cover large market share; market skimming pricing i.e. To get or
receive a high customer return from the customer by charging an initial high price of the product) is
available in the market and their marketing objectives are also different. A businessman should
understand his or her business goals and others market situation and determining their product or service
price.
Promotion:
Promotion is the combinations of advertising, sales promotion, personal selling, direct marketing, online
marketing, digital marketing and publicity that is uses to inform the customer about a particular product,
service, brand even any organization or any idea to get or receive customer concentration about the
company offerings. Marketers should design their promotional plan by considering their
communication and promotional objectives.
People:

3 Prepared by: Rebecca N. Cagas

People in the workforce who is responsible to design and implement each and every strategy and policy
for the purpose of achieving the organizational goals. Manpower is the key to any service organization
without their cooperation no business can go far more away from their existing position.
Packaging
As we know first impressions go a very long way in how people perceive anything. This is the same idea
that companies implement via their packaging. The outer appearance of the product (the package) is the
first thing a potential customer will see, and so it can be a great marketing tool for the product.
In fact, the package of a product serves multiple practical purposes as well. Let us take a look at some of
the uses and functions that it serves.
Protection, Information Transmission, Convenience, Security
There are some effective techniques one can use to ensure that your product package is a great marketing
tool for your product. Let us take a look at some elements that you can incorporate into a package to make
it more effective.
Capturing Attention
One important aspect of a package is that it must draw the attention of a potential customer when it is sitting
on a shelf. It does not have to be the loudest or brightest package, but it must be unique in some way.
Sometimes simplicity could be what sets it apart. Other factors could be the shape, the colour scheme or
even the texture of the package.
Brand and Product Names should be very Clear
It is of absolute attention that your packaging draws maximum attention to your brand name. The customer
will not buy a product if they do not know whose product they are buying. And clearly displaying your
brand name is also a good branding strategy.
Point out to Benefits
Your product may have certain unique elements or benefits. Your packaging should draw attention to such
benefits, it is a huge selling point. For example, if the product is ‘organic’ or has ‘no preservatives’ it should
say so on the package and be displayed prominently.
Designed with the Target Audience in Mind
The company must be clear on whom the packaging is designed to attract and impress. Say the target
audience is youth, then the design can be abstract and modernistic. But say the target customers are senior
citizens, then the design should be clear and specific. Designing your packaging for a target audience is not
always easy but certain criteria can be followed.
Solved Question for You
Q: What are some environmental considerations to keep in mind while designing the package of a product?
Ans: In this era, while designing the packaging there are certain environmental factors all companies must
keep in mind. This is one way to be environmentally conscious and avoid pollution.
- Make sure the package is easily disposable, and provide instructions for such disposal
- Avoid using excess material while packaging the product. We must restrict our use of excessive
plastic if there is no necessary requirement for it.
- The materials we use for the packaging should be recyclable or reusable.
Positioning refers to the place that a brand occupies in the minds of the customers and how it is
distinguished from the products of the competitors. In order to position products or brands, companies
may emphasize the distinguishing features of their brand (what it is, what it does and how, etc.) or they
may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-
end, etc.) through the marketing mix. Once a brand has achieved a strong position, it can become
difficult to reposition it.
In general terms, there are three broad types of positioning: functional, symbolic, and experiential
position.
Differentiation vs positioning
Differentiation is closely related to the concept of positioning. Differentiation is how a company's
product is unique, by being the first, least expensive, or some other distinguishing factor. A product or
brand may have many points of difference, but they may not all be meaningful or relevant to the target
market. Positioning is something (a perception) that happens in the minds of the target market whereas
differentiation is something that marketers do, whether through product design, pricing or promotional
activity.

4 Prepared by: Rebecca N. Cagas

For us to understand more Positioning, let us have the story which tells us about a little history of
positioning the scholars like , David Ogilvy, with developing the positioning concept in the mid-1950s.
Thank you…hopefully you have enjoyed reading it!..now let us apply what he have learned from our
lessons!

Let’s Apply
The activity will be entitled ‘use business opportunity’ in a sentence’.
In this activity we shall be able to understand better each strand in grade 12 and its
importance in terms of business opportunity.
Complete the table. The first column are the different strands in grade 12 and for
the second column you will write at least 1-2 sentences about business opportunity that can get out each
strand.
Grade-12 Strands
HUMMS
ABM
STEM
GAS
AUTOMOTIVE
ICT
BEAUTY CARE
DRESSMAKING
ELECTRICAL
ELECTRONIC
COOKERY
Let’s Analyze
Based on the given meaning and examples for Product, Place, Price, Promotion,
People, Packaging and Positioning Provide your own definition based on your
understanding of the 7 P’s written in each circle below.

Place
Product Price
Positioning 7 P’s
Promotion
Packaging
People

Let’s Try (Evaluation)

FLASHBACKS
Do you fancy puzzles and brainteasers?
Spend some time reading again the lesson and you will find yourself excited toward finishing this fun-
filled and lesson-loaded activity.
Answers to these questions or blanks and statements are arranged horizontally, vertically, and
diagonally in the box below. Have fun searching!
1. It is a packaged business investment that allows the buyer to begin a business.
2. We have already explained how this type of business opportunity works. It is the best choice for
entrepreneurs who do not like experimenting. One good example of this is 7/11.
3. A distributor agrees to sell products and/or services another company makes or
provides. Barns&Noble is a good example of the distribution model.

5 Prepared by: Rebecca N. Cagas

4. People selling Tupperware are the ones who have opted for a network marketing type of business
opportunity.
5. When you get a license to use a brand name on your products. For instance, if you are selling T-
shirts, leather jackets, etc. with a license from Harley Davidson company to use their name.
6. The core element of the business that is designed to achieve the marketing goals.
7. It is anything that can offer in the market to get customer accent and may enable to satisfy customer
needs and wants.
8. A product has five major levels including _____, ______, _____, _____, and ______.
9. The distribution of the product.
10. On the customer side. It is being sacrificed to get or receive a particular product or service. On the
seller’s side, it is the charging amount to give or sacrifice any product or service.
11. It is the combinations of advertising, sales promotion, personal selling, direct marketing, online
marketing, digital marketing and publicity that is uses to inform the customer about a particular product,
service, brand even any organization or any idea to get or receive customer concentration about the
company offerings.
12. Who is responsible to design and implement each and every strategy and policy for the purpose of
achieving the organizational goals?
13. The first and the most obvious use of packaging is?
14. Packaging and labeling are essential tools to inform the customer about the product.
15. Goods have to be transported, distributed, stored and warehoused during their journey from
production to consumption. Packaging will make the process of handling goods more convenient for all
parties involved.
16. To ensure that there is no tampering with the goods packaging is crucial. The package of a product
will secure the goods from any foreign elements or alterations. High-quality packages will reduce the
risk of any pilferage.
17. It refers to the place that a brand occupies in the minds of the customers and how it is distinguished
from the products of the competitors. Closely related to the concept of positioning. It is how a
company's product is unique, by being the first, least expensive, or some other distinguishing factor.
18. Closely related to the concept of positioning. It is how a company's product is unique, by being the
first, least expensive, or some other distinguishing factor.
D A S D T N I G E N E R I C I T B
I U M O E E N P R O D U C T N R U
S G P V A T M E R C U R Y E F A S
T M E E M W J O L L I B E E O N I
R E O P R O M O T I O N I N R S N
I N P S A R P R O D U C T A M M E
B T L G R K R O B I N S O N A I S
U E E S E M A R K E T I N G T S S
T D P R O D U C T S A F E M I S O
I 7 11 S E C U R I T Y A S I O I P
N C O N V E N I E N C E A X N O P
G R R B P O T E N T I A L A W N O
A N D D E A L I N G G M P L A D R
I P L A C E A Y A L A A R F T R T
P O S I T I O N I N G N O A S U U
P R I C E I N A S A L G D M O G N
M C D O D P R O D U C T U A N S I
C O R E B E N E F I T T C R S T T
F R A N C H I S I N G P T T S O Y
D I F F E R E N T I A T I O N R S

6 Prepared by: Rebecca N. Cagas