Learning Area PRINCIPLES OF MARKETING Grade Level 11

W1 Quarter FOURTH Date

I. LESSON TITLE Developing the Marketing Mix: Product

II. MOST ESSENTIAL LEARNING
COMPETENCIES (MELCs)
III. CONTENT/CORE CONTENT
IV. LEARNING PHASES AND ACTIVITIES
I. Introduction (Time Frame: 20 minutes)
Define a product and differentiates the product, services and experiences.
(ABM_PM11-IIa-e-16)
The essence of the new product development, pricing, placing (distribution),
and promoting a product or service.

Good day! At the end of the lesson, you will be able to:
1. define and differentiate the product, service, and experiences;
2. discuss the 7NPD process;
3. design and create an original product packaging.

Before we proceed, find out the meaning of the following words.

Learning Task #1: Directions: Give the meaning of the following words and use it in a business sentence. Write it in your
notebook.
1. Product 4. Packaging
2. Service 5. Labeling
3. Experience
D. Development (Time Frame: 120 minutes)
If you here the word product, service and service what comes first into your mind?

Product is the core of the marketing mix. Product defines the price, the promotion and the distribution. Any changes in
the product may consequently change in one or all of the other elements of the marketing mix. Creating a new product
or delivering a new service and experience with exceptional value to your target customer will make the rest of the
marketing mix easier to manage. We will start this Learning Packet (LeaP) by defining and differentiating product, service,
and experience.

Product: any tangible or intangible good, service, or idea which is a result of a process offered to a market to satisfy a
want or need of the customer or end-user which is received or exchanged for money or something else of value.
In general, it is defined as a “thing produced by labor or effort” or “the result of an act or a process”. It stems from
the verb “produce”, from the Latin word prōdūce (re) “(to) lead or bring forth”. Since 1575, the word “product” has referred
to anything produced.

Service: these are activities, benefits and satisfactions which are offered for sale or are provided in connection with the
sale of goods. –The American Marketing Association.
According to Kotler et al (2005), service is any activity, benefit, or satisfaction that one party can offer for sale to
another which is essentially intangible and does not result in the ownership of anything.

Experience: It is a product which involves experiential aspects of consumption rather than utilitarian ones. This type of
product allows consumers to engage in fantasies, feelings and fun and often carries subjective meaning and
characteristics. – Hirschman and Holbrook, 1982

You know that the first element of the marketing mix is: the Product. After the company identifies a need in the market,
the following questions should be asked in creating a new product, service, or experience that will satisfy the identified
needs:
1. What is the product’s function, appearance, quality, design, features, packaging, and brand?
2. What need does it satisfy?
3. What value does it offer to its customers?
4. What makes it unique?
5. What is its unique selling proposition (USP)?

Product Levels:

1. Core or Generic Product: all products have a core or generic product which houses its core or generic function. A
product’s core or generic function is the purpose why the product was created.
Example: all wristwatches: generic function is to tell time
all automobiles: generic function is transporting people
2. Formal Product: having the same generic function, this level will include factors that could effectively differentiate your
product from other company’s product.
Example: your wristwatch product: stainless steel bracelet
other company’s wristwatch: silicone rubber bracelet

your company’s automobile: automatic transmission (drive)

other company’s automobile: manual transmission (drive)

3. Augmented Product: the supporting services surrounding the product.

Example: your wristwatch product: one year to pay with 0% interest
other company’s wristwatch: one year to pay with 5% interest

your company’s automobile: free insurance

other company’s automobile: no insurance

Classifications of Products/Goods:
Products that are marketed are generally classified:
According to Use
Consumer Goods: personal/household consumptions
Industrial Goods: raw materials /production of other
goods
According to Durability
Consumables: edible and non-edible; a short period
of time use
Semi-durables: longer period of time use ex. clothes,
shoes, jackets
Durables: last a long time use ex. home appliances,
houses, etc.
According to Differentiation
Differentiated Goods: Branded ex. Ford, Mazda
Undifferentiated Goods: not branded ex. rock salt
According to Types
Convenience Goods: frequently purchased, inexpensive
ex. food
Shopping Goods: less frequent purchased, ex. shoes, bags
Specialty Goods: requires large effort to buy ex. houses,
cars
Unsought Goods: seldom purchased ex. investments,
plans

Learning Task #2: Directions: Identify the classification of the product or goods. Write your answer in your notebook. Ask
one of your classmates or household members to check your answer and discuss it with you.

1 Camisole top 6 Insurance plan

2 Bath soap 7 House and lot
3 Copper wire 8 Shoes
4 Magazine 9 Biscuits
5 Security plan 10 Jewelry

The Seven New Product Development (7 NPD) Process:

1. Idea Generation: it refers to the systematic search for new-product ideas. Normally, a company generates all ideas
to find a handful of good ones in the end. Idea generation can come from company employees, research and design
department, distributors, suppliers, or even competitors. Need/problem identification, attribute, listing, forced relationship,
morphological analyses, brainstorming, etc. are used to generate as many worthy product ideas as possible.

2. Idea Screening: it is the filtering of ideas using predetermined criteria (ex. feasibility study, SWOT Analysis, asking people
expert in the field, etc.) to choose that one idea that has the highest potential of success.

3. Concept Development and Testing: new product ideas are converted to customer-centered product concepts and
tested by groups of target consumers for acceptability, believability, purchased intent, and customer value on the
concept.

4. Business Analysis: it is the pencil-pushing stage where probable sales of the new product are calculated together with
its costs and potential profitability that will satisfy the company’s objectives before it could move on to the next product
development stage.

5. Product Development: is it the stage where the product concept is converted into a tangible working prototype or the
actual product development itself.
6. Marketing Testing: the converted tangible product is now marketed in a limited geographical area to determine
whether fine-tuning of attributes, positioning, pricing, advertising, and promotions program is necessary.

7. Product Commercialization: it means introducing the new product into the market. The final stage of the process where
the newly developed product is launched.

The Rationale Behind New Product Development

1. To defend its market share.
2. To position ahead of the competition in a market segment.
3. To establish a foothold in the future market.
4. To take advantage of strengths in product distribution.

Physical product has several added components:

Packaging: it is the wrapping material around a consumer item that serves to contain, identify, describe, display, promote,
and otherwise make the product marketable and keep it clean. —Entrepreneur the Asia Pacific
Consumers sometimes notice and buy products through its packaging. It is not surprising that some companies spent on
motivational research, psychological manipulation, color testing, and so forth in order to ascertain how the majority of
consumers will react to a new package.

Questions to consider in Product Packaging:

1. How much quantity should be contained in the package?
2. What physical attributes should the packaging have to attract customers?
3. What are the legal requirements?
4. What is the most appropriate shape for the package?

Labeling: it is a display of information about a product on its container, packaging or on the product itself. It may include
a listing of product ingredients, nutritional information, usage warning information, manufacturer of the product, date of
manufacture, date of expiry, how to use the product and its handling, etc.

In deciding on the labeling, the following factors must be considered:

⮚ Does it establish the image or personality of the product to the target market?
⮚ Does it determine the most important features of the product?
⮚ Does it determine where the product will be sold and the applicable regulatory requirements, if any.
⮚ Does it determine the placement of the product in relation to other products, particularly its competitors?

E. Engagement (Time Frame: 60 minutes)

Learning Task #3: Directions: In your own words, discuss the 7NPD Process. Write it in your notebook.
Learning Task #4: Directions: Think of a product that you want to produce, and design your own product packaging. You
can select your own tools or materials readily available in your home (ex. Oslo paper, bond paper, etc.)

A. Assimilation (Time Frame: 30 minutes)

Learning Task #5: Word Cloud: Product

Create a word cloud of marketing mix about the

product. An example of a word cloud is the image
on the right side. You can use an online
app/program for this or manually create using arts
materials. Place it in a bond paper or oslo paper
available in your home. Make it as creative,
colorful, and with as many words as you can.

Source: https://johnhanton.com/what-i-do/
V. ASSESSMENT (Time Frame: 30 minutes)
(Learning Activity Sheets for Enrichment, Remediation, or Assessment to be given on Weeks 3 and 6)
Learning Task #6: Multiple Choice: Write the letter of your answer on the space before each number.

______1. A product that involves experiential aspects of consumption rather than utilitarian ones.
A. Service B. Product C. Experience D. Goods
_______2. Any tangible or intangible goods that satisfy the need of the customer in exchange of money.
A. Service B. Product C. Experience D. Goods
_______3. Activities, benefits and satisfactions which are offered for sale or are provided in connection with the sale of
goods.
A. Service B. Product C. Experience D. Goods
_______4. The result of an act or a process.
A. Service B. Product C. Experience D. Goods
_______5. It is the pencil-pushing stage.
A. Idea Screening B. Business Analyses C. Marketing Testing D. Goods
_______6. The systematic search for new-product ideas.
A. Idea Screening B. Business Analyses C. Idea Generation D. Goods
_______7. It is the filtering of ideas.
A. Idea Screening B. Business Analyses C. Marketing Testing D. Goods
_______8. It is the actual product development
A. Labeling B. Product Development C. Experience D. Packaging
_______9. A display of information about a product.
A. Labeling B. Product Development C. Experience D. Packaging
_______10. The wrapping material around a consumer item.
A. Labeling B. Product Development C. Experience D. Packaging

VI. REFLECTION (Time Frame: 10 minutes)

● Write your personal insights about the lesson using the prompts below.
I understand that __________________________________________________________________________________________.
I realize that _______________________________________________________________________________________________.
I need to learn more about _________________________________________________________________________________.

● Communicate your personal assessment as indicated in the Learner’s Assessment Card.

Personal Assessment on Learner’s Level of Performance

Using the symbols below, choose one which best describes your experience in working on each given task. Draw it in the
column for Level of Performance (LP). Be guided by the descriptions below:
✰ - I was able to do/perform the task without any difficulty. The task helped me in understanding the target content/ lesson.
✔ - I was able to do/perform the task. It was quite challenging, but it still helped me in understanding the target content/lesson.
? – I was not able to do/perform the task. It was extremely difficult. I need additional enrichment activities to be able to do/perform
this task.
Learning Task LP Learning Task LP Learning Task LP Learning Task LP
Number 1 Number 3 Number 5 Number 7
Number 2 Number 4 Number 6 Number 8

VII. REFERENCES John. Hanton, “What is a Product Manager”. Accesses April 25, 2021. https://johnhanton.com
/what-i-do/
So, Real C., Torres, Oscar G. Textbook in Principles of Marketing. Edited by Angeles A. De
Guzman, DBA. Philippines: Vibal Group, Inc., 2016.
So, Real C., Torres, Oscar G. Teacher’s Manual in Principles of Marketing, Edited by Angeles A.
De Guzman, DBA. Philippines: Vibal Group, Inc., 2016.

Prepared by: Ma. Cristina F. Pabalate Checked by: Feliz A. Tayao, Jeramie G. Buensuceso
and Annabelle G. Bughao