Unit 8: The Marketing Mix as a Business Strategy

Lesson 5: People

Contents
Engage 1
Introduction 1
Objectives 1

Explore 2

Explain and Elaborate 3

People in Marketing Mix 3
Recruitment Methods 4
Motivated Workforce 7
Proper Customer Service 7
Training and Development 8

Extend 9
Activity 9

Evaluate 10

Wrap Up 13

Bibliography 14
Unit 8.5: People

Engage

Introduction

Fig. 1. Staff Meeting

Have you wondered why three more elements were included in the marketing mix? They say
that without these three elements, the other 4Ps in the marketing mix will not be able to
complete a successful marketing formula. It is true that products and services are offered by
a lot of companies and huge corporations. But how are these products and services
delivered to the end consumers? Which element of the marketing mix handles and
facilitates the actual operations of a business?

Objectives
In this lesson, you should be able to do the following:
● Identify the vital role of people in the marketing mix.
● Describe the importance of a workforce in the operations of a business.

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DepEd Competencies
● Recognize the importance of marketing mix in the development of marketing
strategy. (CS_EP11/12ENTREP-0h-j-10)
● Describe the Marketing Mix (7Ps) in relation to the business opportunity vis-à- vis
people. (CS_EP11/12ENTREP-0h-j-10)

Explore

10 minutes
Guide Questions
Answer the following questions briefly and coherently:

1. Who are the different employees and/or professionals working in your school?

2. Who are the staff or employees that you usually encounter as a consumer?

3. Have you ever been persuaded by any salesperson to avail of a product? How did
you react?

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Explain and Elaborate

People in Marketing Mix

Fig. 2. Staff at a Workplace

As an additional component of the marketing mix, “people” is regarded as a primary key

toward a successful implementation of marketing strategies of any business. Because of the
continuous growth in both products and services industries, their operations wouldn’t
equate to success without the presence of its own workforce.

It is a common notion that the employees are the most valuable resources of any business.
These people play a vital role in service delivery as well as in customer relationship
retention. These people are relied on by the business to design, develop, manufacture, and
produce products to the end consumers. However, a business should not only focus on
hiring as many employees as possible. Rather, it has to invest in high caliber people who are
able to contribute to the success and growth of the business.

Example: Case Analysis of a Workforce Issue

Situationer:
A fast-food chain has over 600 (and growing) branches in the Philippines. Some branches
operate round the clock, while others have specific operating hours. A customer ordered
from a store at 3 a.m. in the morning, but the cashier made several mistakes in taking her

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Unit 8.5: People
orders. The customer got furious, but the cashier asked for an apology and reasoned out
her work exhaustion as an excuse.

1) What seems to be the root cause of the problem in the said scenario?
One problem could be attributed to the working schedule given to the employees of the
store.

2) How should the store manager address such conflict?

The store manager should focus on employing staff who are amenable to work on a night
shift schedule. Likewise, he must ensure that there are at least three employees working for
the same position on different shifts.

3) What should be done to avoid the recurrence of such a problem?

The manager or the person-in-charge of hiring employees should first assess the
qualifications of each and every applicant. The person-in-charge must provide the complete
details of every position to ensure the applicant's preferred working schedule.

Remember
As a component of the marketing mix, people are those relied on by
the business to design, develop, manufacture, and produce products
to the end consumers.

Recruitment Methods
Industries change very rapidly, and businesses have to adjust their objectives and
competencies to survive in a competitive landscape. One of the effective measures to target
these objectives is to promote or recruit people who have the ability to lead the business
towards success. There are two main approaches to recruitment: internal and external
recruitment, equipped with their own advantages and disadvantages.

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Internal recruitment
Internal recruitment is the process of filling vacant employment positions by the employees
who are already working within the business premises. In other words, it is understood as
the recruitment approach taken by businesses where its existing workforce are referred to
other available and suitable posts. The following are the common methods of internal
recruitment:

Promotions
This method of internal recruitment pertains to the act of qualifying a group of employees
to higher positions by assessing their work performance. It aims to shift any employee from
a lower position to a higher one with more responsibilities attached, remuneration, and
ranking privilege. Further, a promotion may be granted to an employee on the basis of
merit, i.e., his skills, work efficiency, productivity, knowledge, and past employment record.
This recruitment process is highly preferred by most businesses, for it is an effective
approach to motivate employees to improve their performance.

Transfers
Transfer pertains to the process of moving from one job to another without any marked
changes in rank and work responsibilities. In most cases, it involves the shifting of an
employee from one department to another, depending on the qualifications of the position
involved. One major benefit of adopting this method is being able to preserve the cordial
relationship between employees, and it also avoids monotony in the work of any employee.

Employee Referrals
With this approach, current employees may refer people who they think are suitable or fit
for the job. This is adopted by most businesses, for it saves cost and time compared to
hiring people from various external sources. In some situations, referral fees are given in
the form of incentives for each successful hire.

Can you think of other internal sources of

recruitment?

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External Recruitment
This type of recruitment refers to the hiring of employees outside the business. Applicants
seeking opportunities have no connection with the internal affairs of the business. One
major advantage of external recruitment is having the chance to bring innovative ideas
carried by the new applicants. Here are some examples of external recruitment methods:

Employment Agencies
Employment agencies are typically run by public, private, and government sectors. These
sectors maintain a database where vital information of qualified candidates are stored and
kept. These pieces of information, for a cost, are then transmitted to employers seeking
individuals who will fill in their vacant positions.

Advertisements
Recruiting through advertisements is very popular and much preferred by a lot of
employers. Job vacancies are thoroughly described and announced through different print
and electronic media. Nowadays, employers resort to posting job vacancies online for a
proper and more sequential pooling of qualified applicants.

Walk-ins
This direct form of external recruitment is done when prospective candidates are invited to
apply for any job vacancy. In this case, a definite date, time, and venue of the interview are
given to the candidates without the need to submit their applications in advance.

Review
The following are the external sources of recruitment:
● employment agencies
● advertisements
● walk-ins

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Motivated Workforce
Motivation pertains to a person’s direction to behave or act in life. In the entrepreneurial
aspect, managing motivation is a critical aspect of the success of any business. Every
employer must motivate its employees by setting an example and identifying what the
employees really desire like the examples below:

Acknowledge any employee’s achievement.

Every individual wants to be recognized for something that he or she has remarkably done
or made. A simple act of acknowledgment from the higher-ups will mean a lot to any
employee.

Offer employee rewards.

Always remember that employees will stay in business if they have a reason to. Starting an
incentive program will keep them motivated and will help them stay focused. This program
may include bonuses, profit-sharing arrangement, or even a commission structure.

Proper Customer Service

It must be remembered that a great business is one that provides excellent customer
service. To be able to give this kind of service, a group of high-caliber employees must be
present to answer or resolve the queries of the customers and to make sure that they are
getting their money's worth.

Since there are identical products offered in the market, the people behind the customer
service can serve as a differentiating factor for any customer. They have to be equipped with
skills and knowledge about the specifications of products and services offered by the
business.

What qualities should an employee possess if he

or she is engaged in customer service?

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Fig. 3. Lecture and Training

Training and Development

Training and development primarily deals with the acquisition of know-how, techniques,
and strategies needed in performing a specific work. This is one of the essential aspects of
human resource management as it helps in enhancing the existing skills of an employee.
Below are some benefits that training and development programs provide:

Resolves any weaknesses

A training and development program may help to instill in the employees the required skills
and knowledge needed for a specific job. Through this, businesses will be able to resolve
any weak points existing among their employees.

Boosts employee satisfaction

When a business invests in its employees, it signifies that they are highly valued and looked
up to. Besides, a training and development program results in a supportive workplace.

Increases work productivity

The productivity of an employee generally increases when a business executes training
programs. In most scenarios, there would also be an increase in efficiency that will lead to
the success of any project.

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Extend

Activity
Give three advantages and disadvantages of internal and external recruitment. Provide your
answers in the table below.

Advantages Disadvantages

Internal 1. 1.
recruitment

2. 2.

3. 3.

External 1. 1.
recruitment

2. 2.

3. 3.

Guide
● Briefly explain the advantages and disadvantages of each type of recruitment.
● Factors such as cost and time may be considered for assessment.

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Evaluate

A. Answer the following questions briefly and coherently:

1. How would you define “people” as a component of the marketing mix?

2. Why is “people” included in the 7Ps of the marketing mix?

3. How would you identify if an applicant is suitable for a job position?

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4. What is the difference between internal recruitment and external recruitment?

5. What is the aim of implementing training and development programs?

B. Read the situation below and answer the subsequent

instructions.

A start-up business is looking for a social media manager

who will handle its social media accounts. This position
requires the regular updating of all accounts and the
implementation of marketing strategies that will boost the
online presence of the business.

List down five skills or attributes required of an applicant for the said job position. In the
next column, briefly explain why such skill is important.

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Skills Explanation

1.

2.

3.

4.

5.

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Wrap Up
___________________________________________________________________________________________

● In the entrepreneurial aspect, people are those relied on by the business to design,
develop, manufacture, and produce products to the end consumers. They are
high-caliber people who are able to contribute to the success and growth of the
business.
● Internal recruitment is the process of filling vacant employment positions by the
employees who are already working within the business premises.
● External recruitment is a type of recruitment that refers to the hiring of employees
outside the business.

People Recruitment

___________________________________________________________________________________________

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Unit 8.5: People

Bibliography
Aernoudt, Rudy, and Marc. Van Rompaey. Entrepreneurship: A Way of Life. Cambridge, U.K.:
Intersentia, 2015.

Bovée, Courtland L, and John V. Thill. Marketing. New York: McGraw-Hill, 1992.

Nwankwo, Sonny, and Ayantunji Gbadamosi. Entrepreneurship Marketing: Principles and

Practice of SME Marketing. New York: Routledge, 2011.

Rogelberg, Steven. “Recruitment Sources.” The SAGE Encyclopedia of Industrial and

Organizational Psychology, 2nd Edition, 2017.
https://doi.org/10.4135/9781483386874.n454.

Walzer, Norman. Entrepreneurship and Local Economic Development. Lanham: Lexington

Books, 2007.

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