Polytechnic University of The Philippines Quezon City Branch

Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

QUEZON CITY BRANCH
LESSON 7: DEVELOPING THE MARKETING MIX
Prepared by:
FRONDOZA, Allyza N.
PAMESA, Julie Ann L.
ARAYATA, Arkazia F.
ABENDANIO, Daisy
BSBA HRM 4-1N
Submitted to:
Prof. Erwin Lara

QUEZON CITY BRANCH
Reporter: FRONDOZA, Allyza N.
Developing the Marketing Mix
The very purpose of marketing is to make your promising customers aware of your
products.
A Marketing Mix is the set of those factors which a company can leverage to make the
consumer purchase its products. The role of the marketing mix is to synthesize the
visible and invisible qualities of a product with the aspirations of the targeted clients.
The marketing mix for a manufactured product will be different from that of a product as
a service. In short, Marketing mix is "set of marketing tools that the firm uses to pursue
its marketing objectives in the target market".
What factors determine the marketing mix?

1. Internal Factors
It includes the factors which lie within the organization or is concerned with the inner
atmosphere of the firm. The internal factors are primarily:
 Nature of products
 Product stages in its overall life cycle
 Availability of funds
 Company objectives
2. External Factors
External Factors concerned with the factors outside the organization. They include the
following aspects:
QUEZON CITY BRANCH
 Degree of competition
 Efficiency of channel
 The buying behavior of a consumer
 Control from the government side
Brief History About Marketing Mix and the 4 Ps:
According to my research, In the 1950s Neil Borden popularized the term

marketing mix which contained more than ten elements of marketing. The
fundamental among them was the 4 Ps of marketing. Borden was an advertising
professor at Harvard University. His 1964 article titled "The Concept of the
Marketing Mix" demonstrated the ways that companies could use advertising
tactics to engage their consumers. Decades later, the concepts that Borden
popularized are still being used by companies to advertise their goods and
services.
It was actually E. Jerome McCarthy, a marketing professor at Michigan State

University, who refined the concepts in Borden's book and created the idea of the
"4 Ps," a term that is still used today. In 1960, McCarthy co-wrote the book "Basic
Marketing: A Managerial Approach," further popularizing the idea of the 4 Ps.
Now let us discuss the four fundamental elements of the marketing mix which are
the Product, Pricing, Promotion, and Place.
QUEZON CITY BRANCH
The 4 Ps are used by companies to identify some key factors for their business,
including what consumers want from them, how their product or service meets or
fails to meet those needs, how their product or service is perceived in the world,
how they stand out from their competitors, and how they interact with their
customers.
PRODUCT
A product is the heart of the marketing mix. All marketing activities begin with the
product. The product is not a physical entity alone; it captures the whole tangible and
intangible aspects like services, personality, organization, and ideas.
Product refers to the product or services your business provides to your target
audience. This represents an item or service designed to satisfy customer needs and
wants. To effectively market a product or service, it’s important to identify what
differentiates it from competing products or services. It’s also important to determine if
other products or services can be marketed in conjunction with it. Without a product, we
have nothing to price, promote or place. Hence, of all the 4 Ps the Product is the most
elemental P.
QUEZON CITY BRANCH
Reporter: PAMESA, Julie Ann L.
PRICE
Price refers to how much your item or service costs. How you cost your item depends
on your competitors, seasonal discounts request of the customers, cost to create the
item, labeling and what buyers are willing to spend. Companies moreover have to be
considered their pricing models, including choosing between one-time purchases and
loyal customers. Marketers must link the price to the product's real and perceived
value. Alternatively, they may lower the price so more consumers can try the product.
Marketers also need to determine when and if discounting is appropriate. A discount

can sometimes draw in more customers, but it can also give the impression that the
product is less exclusive or less of a luxury compared to when it is was priced higher.
UNIQLO, headquartered in Japan, is a clothing manufacturer of global casual wear.

Like its competitors—other famous causal wear brands such as Gap and Zara—
UNIQLO creates low-price, daily-use garments.
What makes UNIQLO unique is that it creates innovative, high-quality products. It is

able to accomplish this by procuring its fabric from its material manufacturer partners,
securing stable, high-quality materials at low cost by ordering in large volumes, and
continuously seeking the highest-quality and lowest-cost material in the world. The
company also directly negotiates with its manufacturers and has built strategic
partnerships with high-quality and innovative Japanese manufacturers.
UNIQLO also outsources its production to partner factories; because it doesn't own its
own factories, it has the flexibility to change production partners if the best production
QUEZON CITY BRANCH
Reporter: PAMESA, Julie Ann L.
location changes over time. Finally, the company employs a team of skilled textile
artisans that it sends to its partner factories all over the world for quality control. In
addition, production managers visit factories once a week to resolve quality problems.
It’s not all about the money, it is also about how you differentiate your product or
service than other company.
THE MARKETING MIX
PRICING STRATEGY
PRICING STRATEGY DEFINITION

Penetration Pricing Here the organization sets a low price to
increase sales and market share. Once
market share has been captured the firm
may well then increase their price.
Skimming Pricing The organization sets an initial high price
and then slowly lowers the price to make
the product available to a wider market.
The objective is to skim profits of the
market layer by layer.
Competition Pricing Setting a price in comparison with
competitors. In reality a firm has three
options and these are to price lower,
price the same or price higher than
competitors
Product Line Pricing Pricing different products within the same
product range at different price points.
Bundle Pricing The organization bundles a group of
products at a reduced price. Common
methods are buy one and get one free
promotions
Psychological Pricing The seller here will consider the
psychology of price and the positioning of
price within the market place.
QUEZON CITY BRANCH
Reporter: ARAYATA, Arkazia F.
Place
When a company makes decisions regarding place, they are trying to determine where
they should sell a product and how to deliver the product to the market. The goal of
business executives is always to get their products in front of the consumers that are
the most likely to buy them.
In some cases, this may refer to placing a product in certain stores, but it also refers to
the product's placement on a specific store's display. In some cases, placement may
refer to the act of including a product on television shows, in films, or on web pages in
order to garner attention for the product.
The 1995 movie Golden Eye was the seventeenth installment in the James Bond movie
franchise. It was the first Bond movie not to feature an Aston Martin car. Instead, the
British actor Pierce Brosnan got into a Z3 by BMW. Although the Z3 was not released
until months after the film had left theaters, BMW received 9,000 orders for the car the
month after the movie opened.
Marketing Mix – Placing (Distribution Strategy)
Distribution strategy is the method used to bring products, goods and services to
customers or end-users. You often gain repeat customers by ensuring an easy and
effective way to get your goods and services to people, depending on the item and its
distribution needs. Organizations consider which distribution strategy is best while being
cost-effective and increasing overall profitability. You can even use multiple or
overlapping distribution strategies to reach target audiences and meet company goals
and objectives. For example, a product might sell better online to one demographic and
via a mail-to-order catalog to another target audience group.
TYPES OF DISTRIBUTION STRATEGIES
There are primarily two types of distribution strategies, known as direct and indirect, and
depending on the product or service, the two strategies offer different benefits and cost
savings to a company. Here's a definition of direct and indirect distribution strategy:
Direct distribution strategy: Direct distribution is when manufacturers sell and

send their products directly to consumers without the use of other parties and
entities. It often requires having a warehouse to store products and a delivery
process to get them to customers.
Indirect distribution strategy: Indirect distribution strategy is when

manufacturers use intermediary businesses and entities to help logistically get
products to customers. It's often most helpful for large amounts of routine
products and can create cost savings for a company.
Within these two main types of distribution strategy are more specific options, including:
 Intensive: An intensive place strategy is when a company places its product in

as many stores as possible. Candy companies often use this strategy, as they
place their products in supermarkets, movie theaters, convenience stores and
airports.
 Selective: A selective place strategy is when a company places its product in
only a few retail stores. For example, companies that manufacture expensive
technology items often use this strategy.
 Exclusive: An exclusive place strategy is when a company places its product in
one retailer. This is usually for luxury products that require salespeople to convey
a lot of information about the product during the sale, such as cars.
QUEZON CITY BRANCH
Reporter: ABENDANIO, Daisy
Promotion Mix
A promotion mix is a combination of marketing communication methods such as

advertising, sales, public relations, and direct marketing to achieve a given marketing
goal. The promotional mix is usually just one component of a bigger marketing strategy.
You might decide to use a few methods or a combination of them all for your campaign.
(Indeed, 2021)
The goal of promoting a product is to reveal to consumers why they need it and
why they should pay a certain price for it. (Twin, 2021)
The four elements of a promotional mix
Businesses utilize four primary tools in the traditional promotional mix to generate
meaning for their service or product and persuade the public to buy it:
1. Advertising: Companies pay to advertise their service or product to a high number of

people at the same time. Common forms of advertisements include ads in television,
newspapers, direct mail, radio, magazines or online.
2. Sales promotion: Sales promotions are short-term incentives to encourage people

to buy a product or service. Examples include coupons, rebates or games and contests
that the public can participate in.
3. Public relations: This type of promotion communicates a company’s services and

image to the public. Examples can include news conferences or press releases.
QUEZON CITY BRANCH
4. Direct marketing: This strategy is a more personal approach, targeting customers

directly through in-person promotions, catalogs, e-mail, telephone calls or mail. (Indeed,
2021)
The Objectives of Marketing Communication
All marketing communication approaches have three main goals: (1) to

communicate, (2) to compete, and (3) to persuade. Organizations must ensure that
whatever information they convey is clear, accurate, truthful, and beneficial to the
stakeholders involved in order to be effective. In reality, being truthful and accurate in
marketing communications is more than a question of ethics; it's also a question of
legality, because false marketing communications can lead to litigation and even
criminal prosecution.
At marketplaces where competitors sell essentially the same product at the same
price in the same outlets, effective marketing communication is critical. Only via
marketing communications can a company appeal to specific demographics,
differentiate its product, and build long-term brand loyalty. It's a constant battle to keep
your message more appealing or convincing than your competitors'.
Ideally, marketing communication would persuade target segments to take a

desired action by presenting ideas, products, or services in such a compelling way.
Persuasion and convincing skills are vital for attracting new business, but they may also
be required to re-convince and keep a large number of consumers and customers.
There is no assurance that a buyer will continue with a certain brand after purchasing it
once,

QUEZON CITY BRANCH
twice, or a dozen times, or even for a dozen years. That's why marketers want to keep
reminding him or her of the product's distinct advantages. (Lumen, n.d.)
The goal of promotions is to get people to change their behavior. Getting

customers to buy your goods when they previously did not, constitutes a change in
behavior. However, the behavioral goal does not have to be so abrupt. Consumers are
frequently primed in order to allow them to accumulate positive feelings toward a
product before they are finally persuaded to buy it.
The Hierarchy of effects model by Robert J Lavidge and Gary A Steiner states
that consumers need to go through six stages before finally getting a product. These
are:
1. Awareness. The realization that your product exists.

2. Knowledge. Comprehension about your product’s features and benefits.
3. Liking. Gaining positive feelings toward your product.
4. Preference. Deciding that your product is better than others.
5. Conviction. The belief that your product is worth buying.
6. Purchase. Actually buying your product.
Consumers are frequently guided through these stages by promotions. In fact,

just raising knowledge of a product's existence or awareness is a big
accomplishment in and of itself, given that there are far too many companies vying
for a consumer's attention. In some ways, raising awareness contributes significantly
to a product's brand equity.

QUEZON CITY BRANCH
Setting the Promotions Budget
How much money should a marketer spend on product promotion? This is a

difficult question to answer, and there really is not any easy answer to this.
However, there are four broad approaches to creating a workable promotion

budget. The first three are simple to construct but have significant flaws. Their
method of calculating the budget might not be appropriate for the work that needs to
be done for the brand. The fourth method, on the other hand, directly addresses the
task at hand, but it will be difficult to implement.
1. The Affordability Method. The budget is simply determined by the amount of

money the organization can afford to spend on promotions. It basically means
that the promotion budget is in the hands of the finance head rather than the
marketing head. The marketing department may not be able to plan long-term
promotion strategies because it will be dependent on what future budgets are
available.
2. Percentage of Sales. The promotional budget is calculated as a percentage of
revenue in this case. This is the method that huge companies in established
sectors, such as Pepsi, choose since it is simple to calculate and has a solid
foundation. The only difficulty is that this isn't a solid foundation for what has to
be done. For example, if sales decline, the budget declines as well—although, in
theory, this is precisely the period when the budget should be increased to
increase sales.
3. Competitive Parity. The promotional budget is calculated depending on what
others in the sector, particularly competitors, are spending. This will ideally keep
the company on par with the competition. The problem is that, by definition, a

QUEZON CITY BRANCH
budget based on parity will prevent a company from launching creative

campaigns that may necessitate larger investments.
4. Objective and Task. Finally, this is a budget that is created based on what the
company genuinely requires. There is no easy way to do this: the marketing
department must first discuss the brand's objectives, then create a
communications plan that aims to achieve these objectives, and finally set the
budget based on the plan's tasks list. This is a fairly simple method of
determining the appropriate budget for the appropriate activity. The
disadvantages are that (a) preparing the proposal will take time and effort, and
(b) there is no guarantee that top management will approve the requested
budget. (llana, 2016)
QUEZON CITY BRANCH
REFERENCES:
 4 Ps Of Marketing - Marketing Mix Definition & Examples – Mageplaza

 Principles of Marketing (1st ed.) Rex Book Store,Inc.
 https://www.indeed.com/career-advice/career-development/marketing-
promotional-mix
 https://courses.lumenlearning.com/wmopen-introbusiness/chapter/promotion-
integrated-marketing-communication-imc/
 https://www.indeed.com/career-advice/career-development/distribution-strategy
 The 4 Ps (investopedia.com)

Polytechnic University of The Philippines Quezon City Branch

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Polytechnic University of The Philippines Quezon City Branch

Uploaded by

Copyright:

Available Formats

Republic of the Philippines