What I need to Know

The success of any marketing campaign relies mainly on the smart skills of
marketers in selecting the right Marketing Mix. This Marketing Mix include the 7P’s such
as product, price, promotion, place, people, packaging, and positioning which are all
vital in designing a marketing strategy for a brand. to determine the right products for
the right markets.
Thus, this module is intended for you to get acquainted with the relevant
variables as well as the importance of Marketing Mix in the development of marketing
strategy. As a future entrepreneur, your smart planning and mastery of controlling these
variables will enable you to determine the right products for the right market.

Learning Competencies
3. Recognize the importance of marketing mix in the development of marketing strategy.
3.1. describe the Marketing Mix (7Ps) in relation to the business opportunity vis-
à-vis: Product, Place, Price, Promotion, People, Packaging, and Positioning.
(CS_EP11/12ENTREP-0h-j-10)

Objectives
After going through this module, you are expected to:
1. define a product along with its different classifications;
2. evaluate products according to its attributes and establishing strategies;
3. conduct a mini-seminar among community marketers; and
4. appreciate the value of the products bought.
 What I Know

Directions: Read the statements below and choose the best answer. Write it on a
separate sheet of paper.
1. This may be goods or services which are being offered to the market for information,
purchase, and/or utilization that would answer and satisfy the needs and wants.
a. product c. price
b. promotion d. place

2. It pertains to the physical appearance of the product. It may catch or drop the
attention of the buyer.
a. features c. style
b. quality d. design

3. These are the products or services that consumers buy regularly or usually.
a. unsought products c. shopping products
b. specialty products d. convenience products

4. These are the products or services that consumers are either not aware of the brand
existence or have awareness of the brand however not usually consider buying it.
a. unsought products c. shopping products
b. specialty products d. convenience products

5. These are the products that help companies in operation and production, installation,
and accessory equipment.
a. materials and parts c. capital items
b. supplies d. services
 Lesson
Marketing Mix: The Product

In this lesson, we are going to explore more about the product as the first variable
among the 7P’s in the marketing mix and serves as a major element in the entire
consumer offerings.

What’s In

In your previous lesson, you have learned about validating customer-related concerns
through interview, FGD, and survey. Let us test how much you remember by
differentiating these three concepts using the given diagram below. Do this in a
separate sheet of paper.
 What’s New

Think of some products that you frequently buy and/or use. Present them in class highlighting
your responses to the following questions:
1. Why do you purchase such product/s? (answers could be for personal consumption etc.)
2. What do you consider first in choosing the products to be purchased?
3. Do you think you really need the products that you have purchased?

What is It

The PRODUCT defined

The product is the first variable in the marketing mix. It serves as the major element in the entire
consumer offerings. The product is defined as all things which may be goods or services being
offered to the market for information, purchase, and/or utilization that would answer and satisfy
the needs and wants. However, it is important to note that products are not just confined with
tangible offerings that consumers can buy. Products also include services, individuals, ideas,
happenings, locations, and institutions or a combination of these.

Classification of Products: Consumer Products and Industrial Products

A. Consumer Products refer to any products that are purchased by customers for their
consumption.

Types of Consumer
Products Definition Examples

1.Convenience Products  These are products or services  toothpaste, detergent

2. Shopping Products
that consumers buy regularly or soap, shampoo, and the
usually because they often need likes
them for everyday use.
 The price of these products is
usually low and/or affordable.
 These are products and services  gadgets, dress, bag,

3. Specialty Products
4. Unsought Products
that consumers buy infrequently home appliances, and the
because consumers often make likes
comparisons regarding its
suitability, quality, style, and
price to other brands before
deciding to buy.
 These are products that have  A special type of car
unique attributes and brand where buyers have to go
recognition for which consumers to the particular country
exert special effort before where the car is being
purchasing. sold.
 These are products or services  Funeral services,
that consumers are either not insurance policies
aware of the brand existence or
have awareness of the brand but
not usually consider buying it.

B. Industrial Products refer to any products that are purchased by individuals or institutions for
the purpose of implementing the business.

Types of Industrial
Products Definition Examples

1. Materials and Parts  These refer to the raw materials  oil, cotton, paper, iron,
or manufactured materials and tires, and the likes
parts
2. Capital Items  These include products that help  generators,
companies in operation and manufacturing plant, lift
production, installation, and trucks, companies
accessory equipment.
3. Supplies and Services  These include operating  coal, paint, computer
supplies, repair, and repair
maintenance

Developing Products and Services

In developing products and services, the product attributes should be considered before being
communicated and delivered to the customers. These attributes include:

1. Style and Design

Brands become more distinct and look special among buyers through its style and
design. Style refers to the physical appearance of the product which may catch the attention of
prospective buyers. Meanwhile, design is more than attracting the attention of the customer
through pleasant aesthetics of the brand; instead, designs determine the usefulness of the
products that goes with its style.
2. Quality

Quality has a direct relationship with product performance since it is the determinant of
customer value and satisfaction. Nevertheless, quality is beyond producing a defect-free
product. Quality should be able to satisfy the consumer’s needs.

3. Features

To establish product distinction, unique product features should be considered. This

helps companies to attain fair competition and superiority in the market. For example, many
brands of detergent powder offer different features like adding fabric conditioner, new scent,
bleaching features in the powder itself, and user-friendly packaging. In this way, certain brands
may establish superior features compared to other brands.

Establishing Product Strategies

a. Branding – It refers to the name, terms, signals, symbols, design, or combinations of these,
which serve as identification of the products, services, or institutions that separate them from
their competitors. To attain good branding, an entrepreneur should answer the following
questions:
Is the branding clear, unique, and remarkable among consumers?
Does the brand name add value to the product?
Do the brand name and the product itself established brand relationship?
b. Packaging – An essential tool in marketing which pertains to the process of designing and
producing container, storage, wrapper, or covering for the products. To attain good packaging,
an entrepreneur should answer the following questions:
Does the packaging attract the attention of the customers?
Does the packaging describe the product as a whole?
Does it help in creating more product sales?
Is the packaging effective enough as the most important promotional tool of the
product?
c. Labeling – The label is the identity of a product. From simple tags to intricate graphics, label
plays a vital role in creating a unique identification of the brand because it tells many things
about the product’s name, origin, symbol, content, dimension, and usage. The label of a product
can be in a form of brand/company logos which set its uniqueness, image, and personality. To
attain good labelling, an entrepreneur should answer the following questions:
Is the label fresh, pleasant, and promising?
Are the label’s font, color, and visuals appealing yet unique?
Does the label or logo help the brand achieve unique identity and personality?
d. Product Support Service - This is essential in building healthy relationship with customers.
Marketing does not stop by simply making sales, instead, marketers and entrepreneurs should
ensure customers’ overall brand experiences by making them feel happiness and satisfaction
even after the sales. In providing product support service, companies include in the product
packaging their contact numbers, email address, or social media accounts just in case
consumers might want to reach them for queries, comments, and/or suggestions. In ensuring
product support service, a company/entrepreneur should be able to answer the following:
Does the product satisfy the overall brand experience of the consumers?
Does the product packaging include contact details in case consumers want to raise
queries, comments, or suggestions for brand improvement?
Stages in New Product Development

Stage 1: Idea Generation

Gathering ideas for new products which may come fro sources like market research, customers, employees,
consultants, distributors, and suppliers.

Stage 2: Idea Screening

Exploring the potential, most feasible, practical ideas to develop.

Stage
Transforming the product idea into concept 3: Concept
product Development
or a more and Testing
detailed description of the product idea. Then, the product idea is
visualized as actual and potential product using the consumer's lenses. The product concepts will be tested by a group of target
customers as participants to see the feasibility. the insights out of the testing will be essential in developing new products.

Stage 4: Marketing Strategy and Development

Developing a marketing strategy based on the tested and treated new product concept considering the target audience,
marketing objectives, product positioning, pricing, distribution plan, and promotional tools.

Stage 5: Business Analysis

Reviewing of product sales, cost, and profit; considering the financial worth of the new product to the business/company.

Stage
Developing and producing the prototype of the new6:product.
ProductThe
Development
produced prototype will face series of testing and will be
presented to the target segment of the market, making sure that the product is ready and that there is no need for further
modification.

Stage
Launching the product in a specific geographical area 7: Test marketability
for product Marketing testing. In this stage, teh performance marketing
mix strategy will be monitored and evaluated. The result of the observation will be the basis if the product needs adjustments or
completely passes the tests and ready for grand launching in the national market.

Stage 8: Commercialization
New product is assumed to be ready for national launching. The timing of the launch, the distribution and availability of the
product, and the promotional tools to be used should be considered in this stage.
Product Life Cycle (PLC)
Every product has a life cycle and not all products have the same life expectancy. Some
brands live long while others have short-live shelf life.
Product Life Cycle (PLC) is an important concept that should be understood by all
entrepreneurs since this provides the full description of the stages that the product will go
through, from the conception of the product up to the final stage. Thus, entrepreneurs will have
greater chance to strategize its moves as the product reaches each stage.

Four (4) Major Stages in Product Life Cycle

This stage includes research and development, marketing testing
Introduction Stage
and launching of the product.

Growth Stage This stage is characterized by having sales increase at a fast rate.

This is the stage when sales are near their peak. However, the
Maturity Stage rate of growth is gradually going down. This may be a result of
having new competitors in the market.

This is the final stage of the cycle wherein the sales of the brand
Decline Stage
begin to fall and the profits of the company start to drop.
 What’s More

Independent Activity 1: Spot Me!

Directions: Spot the terminologies that you have encountered in the lesson. Write them in a
separate sheet of paper.

I T C U S T O M E R

D A P R O D U C T H

E U B O N E A Y E T

A S A L E S I C S W

S M K S K I L L T O

C O A E L G L E I R

R A B R A N D I N G

E R P V K H Q A G G

E F L I D E A Y U O

N N O C T O T R S O

I A M E W A U I T D

N L I S T Y L E N S

G P A C K A G I N G
Independent Assessment 1: Complete Me!

Directions: Complete the table below by supplying examples of the types of products given.
Make sure to list your own examples aside from the ones given in the module.

CONVENIENCE SHOPPING MATERIALS AND SUPPLIES AND

PRODUCTS PRODUCTS PARTS SERVICES

Independent Activity 2: True or False

Directions: Write TRUE if the statement is correct and FALSE if otherwise.

___________1. A good branding can add value to the product.

___________2. Experiences of customers with brands should be considered as important value
in delivering services.
____________3. Customers patronize brands based on the outcome of their experiences using
the products.
____________4. Products are just confined with the offerings that customers can touch.
____________5. Pursuing non-viable ideas is a must in product development.
____________6. All products have the same life expectancy.
____________7. A good product packaging promotes strong recognition of the brand.
____________8. Customers buy unsought products because they regularly use them.
____________9. Quality solely means producing a defect-free product.
____________10. Success of a product or the company as a whole relies on how well it
manages the buyers’ experiences.
Independent Assessment 2: Let’s Assume

Directions: Think of one (1) consumer product and one (1) industrial product that are currently
available in your school or at home. Suppose that the manufacturers of the said products are
seeking for your truthful evaluation as their valued customer. You were asked to give ratings to
the product’s attributes and product strategies as well as give comments and suggestions for
the product improvement. As a customer, the manufacturers value your feedback. Accomplish
the Product Evaluation Card below and be ready to share your response to the class.

Product Evaluation Card

Product Name: __________________________________ Product Type: ___________________

5 - Excellent 2 - Fair
4 - Very Good 1 - Needs Improvement
3 - Good

A. Product Attributes
Criteria Rating
1. Style and Design (physical/aesthetic appearance of the product) _____________
2. Quality (total product performance or benefit to customers) _____________
3. Features (product distinction; competitive and superior value of the product) _____________
Average Rating _____________
Verbal Description _____________
Comments and Suggestions:
________________________________________________________________________________
______________________________________________________________________________

B. Product Strategies
Criteria Rating
1. Branding (product name, sign, symbol, design, or logo) _____________
2. Packaging (container, wrapper, or storage of the product) _____________
3. Labeling (product identity) _____________
4. Product Support Service (customer’s overall brand experience/
room for customer feedback for the product) _____________
Average Rating _____________
Verbal Description _____________
Comments and Suggestions:
________________________________________________________________________________
______________________________________________________________________________
 Product Evaluation Card

Product Name: __________________________________ Product Type: ___________________

5 - Excellent 2 - Fair
4 - Very Good 1 - Needs Improvement
3 - Good

A. Product Attributes
Criteria Rating
1. Style and Design (physical/aesthetic appearance of the product) _____________
2. Quality (total product performance or benefit to customers) _____________
3. Features (product distinction; competitive and superior value of the product) _____________
Average Rating _____________
Verbal Description _____________
Comments and Suggestions:
________________________________________________________________________________
______________________________________________________________________________

B. Product Strategies
Criteria Rating
1. Branding (product name, sign, symbol, design, or logo) _____________
2. Packaging (container, wrapper, or storage of the product) _____________
3. Labeling (product identity) _____________
4. Product Support Service (customer’s overall brand experience/
room for customer feedback for the product) _____________
Average Rating _____________
Verbal Description _____________
Comments and Suggestions:
________________________________________________________________________________
______________________________________________________________________________

Scoring Criteria for Product Evaluation Presentation

Sound/Unbiased product judgment/evaluation 30%

Logical presentation of ideas and reasoning 30%
Creativity and confidence in the presentation 40%
Total 100%
Independent Activity 3: Spell Me Out!

Directions: Create an acrostic of the word PRODUCT emphasizing its nature, attributes and
other important concepts related to it. Be able to present your creative work to the class.

Independent Assessment 3: Let’s See!

Directions: Answer the following questions briefly yet meaningfully. Write your answers on a
separate sheet of paper.

1. Why should companies/manufacturers consider customers’ experiences with their products?

2. What is the role of research in creating or developing new products?
3. As a customer, what makes you decide to buy certain product/s? Why?

What I Have Learned

In a nutshell….
The Product, being the first variable in the marketing mix, serves as a
major element in the entire consumer offerings. It includes both tangible
products and services.
There are two classifications of products and services. Consumer
products include convenience, shopping, specialty, and unsought
products. Meanwhile, industrial product clusters include materials and
parts, capital items, and supplies and services.
In developing products and services, the style and design, brand quality,
and features should be considered.
Branding, packaging, labeling, and product support services are among
the product strategies that marketers must utilize in establishing products
and services.
There are eight (8) stages in new product development, namely: idea
generation, idea screening, concept development and testing, marketing
strategy and development, business analysis, product development, test
marketing, and commercialization.
Every product has its certain life cycle since not all products have the
same life expectancy. Therefore it is important for marketers to be aware
of the Product Life Cycle (PLC) which provides full description of the
stages that the product will undergo, from the conception of the product to
the final stage.
 What I Can Do

Let us apply what you have learned from this module.

MINI-SEMINAR
With the help of your Entrepreneurship subject teacher, coordinate with your community officials
that your class (can be divided into groups) will hold a mini-seminar among some small-scale
marketers, business owners, or entrepreneurs in your barangay. Your mini-seminar can last for
about an hour and a half with thorough and interactive discussions of some concepts discussed
in this module. You or your group will be graded through the following:

Criteria for Grading Mini-Seminar

Logical presentation of ideas 30%

Unity, cooperation, and coordination among members 30%
Overall organization of the program 40%
Total 100%

Assessment

Directions: Identify what is being asked by choosing from the terms in the word pool. Write
your answers on the blanks.

Products Commercialization Capital Items Unsought Product /s

Shopping Products Maturity Stage Product Life Cycle Packaging
Labeling Features Decline Stage Value
Supplies and Services Convenience Products Product Development Stage

___________________1. A stage wherein the new product is ready for national launching.
___________________2. This serves as the identification or ID card of the brand becaue it tells
many things about the product’s name, origin, symbol, content, dimension and usage.
___________________3. Its fundamental role is to secure the product’s condition.
___________________4. These are products that help the companies in operation and
production, installation, and accessory equipment.
___________________5. Before buying these kind of products, customers exert efforts on
getting information on the brands.
___________________6. Funeral services if an example of ________.
___________________7. Using eco-friendly materials is one example on how to enhance
product ___________.
___________________8. In this stage, the sales of the product are near their peak however,
the rate of growth is gradually going down.
___________________9. A concept that provides marketers full description of the stages that
the product will go through.
___________________10. These are goods or services which are being offered to the market
for information, purchase, and/or utilization that would answer and satisfy the needs and wants.
___________________11. This is when the prototype of the new product is being designed and
produced.
___________________12. The sales of the brand begin to fall, and the profits of the company
start to drop.
___________________13. A good branding can add ________ to the product.
___________________14. soap, shampoo, toothpaste, and candies are examples of ______.
___________________15. Computer repair, water refilling, coal, and paint are examples of __.

Additional Activities

Here are some of the other additional activities that you can do to enrich your learnings
about the first variable in the marketing mix, the product.

 Interview some of your teachers, canteen helpers and other members of your school
community regarding the products and services that they usually avail either for personal
consumption and/or other purposes. You can also ask them of their general feedback of
the product and services they have availed. Make a short reflection paper citing your
insights on the data that you have gathered.

 Present the major learnings that you gained from this module through a diagram or
graphic organizer.
References

Areola, E.M., Gonzales, E. and Siggaoat, J. (2017). Entrepreneurship. JFS Publishing Services:
Pasay City

Gonzales, E. (2018). Entrepreneurship and Marketing. Rex Publishing House: Manila, Phils.