Place- process of moving the products (distribution) from the producer to the intended user.

2 types of distribution

1. Indirect- hindi ikaw (shoppe, lazada)

2. Direct- ikaw mismo or yung costumer ang pumunta sa physical store.

Promotion- Providing awareness to your customers that your product or business exists

5 types of promotion

1. Advertisement

2. Publicity- good or bad it still publicity,

3. Direct Marketing- networking companies, direect buying and selling, specific procedures in marketing

4. Personal Marketing- online selling

5. Sales Promotion- Buy 1 take 1, 50% discount sale

People- working with you to achieve the organizational goals

3 TYPES OF PEOPLE

1. Who makes the product

2. Who delivers the product

3. Who talks to people

Packaging- the container of the product that will represent your brand

5 functions

1. Protection

2. Information transmission

3. Convenience

4. Security

5. Marketing

Positioning- The impression or mindset you want your customers to think about you

Marketing- sets the tone right

MARKETING PLAN- THE MARKETING MIX

IMPORTANCE

POSITIONING

PRICING

COST- expenses used in over all cost of your business activities

- monetary measure of the amount of resources given up or used for some purpose

1. type- dividing the cost using product cost and period cost- nagastos as raw materials to the main
product

period cost- not related in product but necessary (electricity, water, internet biil)

2. function-manufacturing(cost related in product, manufacture the product), non manufacturing(not

related in manufacturing product)

3. Behavior- Variable and fixed cost

variable cost- it varries from time to time depends on situation

-raw materials, production supplies, commissions (reward when sales agent that hit the sales target),
delievery costs(fuel and oil)

fixed cost- it cant be removed in the business-(depreciate, lot)

- rent and lease costs, salaries, utility bills, insurances, loan repayments,

Cost drivers- factors or elemnets that change cost

-level of activity or volume that affects cost (productions sales, number of hours, production)

TIME/ EFFORT= COST

Components of Total Manufacturing Cost

- eg. bicycle- direct material cost(raw materials), direct labor cost(assembles), factory overhead(cost is
not part in manufacturing activities but needed, bills, rents, salaries- office)

DEMAND

- more people want to buy the product, in demand

CONCEPT OF PRICE ELASTICITY- sensitivity of the customers demand

SHIP IN- IM INDIRECT MATERIAL

SHIP OUT- ME MARKETING EXPENSES

ELASTICITY OF DEMAND

ELASTIC DEMAND- flexible ang demand depends on the price

INELASTIC DEMAND- buy because needed

FACTORS AFFECTING DEMAND- income of the consumers, price of substitutes(alternatives), price of

complements(coffee and sugar, people will result without sugar if the price is up), changes in
fashion/tastes, seasonal (like christmas tree), advertising, price

PROFIT- papatong ng presyo, overpricing

PRICING STRATEGIS- strategies you can maximize when setting up the prices of products

TYPES OF PRICING STRATEGIES

Penetration- (kopiko coffee, nescafe, rural people)

Skimming (opposite of penetration, vice ganda cosmetics)

Psychological

promotional- (50% off, limited edition)

odd/ even- (79php,89php)

prestige- (chanel, LV,)

PRICING IS JUST LIKE BRANDING- THERE ARE NO RIGID RULES AS HOW THE PRICES ARE SET

THERE ARE SOME VARIABLES THAT HIGHLI AFFECT THE PRICING

MARK UP- APPLYING PERCENTAGE TO A PRODUCT’S COST TO OBTAIN ITS SELLING PRICE

a. Markup

OPERATIONS

INPUT- PROCESS- OUTPUT

LEGAL FORMS OF ORGANIZATION

1. Sole Proprietor- single owner, receive all profit, absorbs all loss and solely responsible for the
business, has title to all the things owned by the business

2. Partnership- guided by the contract, two or more persons bind themselves (agree to form
business), contribute money, property or industry to a common fund, dividing the profits among
 themselves (ex. Law firm, accountant firm)

Types of Partnership

According to liabiltiy

General partner- the general will get from its own pocket if it has utang

Limited partner- liable only to extent of his capital contribution

At least one General Partner is required all partnership

According to contribution

Capitalist partner- contributes money or property to the common fund of the partnership

Industrial partner- who contributes his knowledge or personal service

Managing partner- represent all the partners, carries on the daily business on behalf of other partners

Liquidating partner- designated to wind up or settle the affairs of the partnership after terminating the
business

Dormant partner- does not take active part and is not known by outside partners

Silent partner- not active but known

Secret partner- active but not known to be a partner

Nominal partner- not a partner but represent himself as one

Termination of partnership- death, incapacity, or withdrawal of a partner

Corporation- an artificial being created by operation of law

Classes of Corporation

Stock corporation- for money, share capital is divided into shares ‘shareholders’

Non-stock- no part of the income is distributed (educational, religious, charitable0