 He describes marketers as „Mixers
Lesson 1 of Ingredients‟
MARKETING
MIX
MARKETING MIX
 the marketing mix refers to the set
of actions, or tactics, that a company
uses to promote its brand or product
in the market.
 It is defined as set of marketing tools
that the firm uses to pursue its
marketing objective in the target
market.
 It is a foundation concept in
marketing.
 Also known as the four (4) P‟s broad
levels of marketing decision namely
Product, Price, Place and Promotion.
 In services marketing, a modified and
expanded marketing mix is used,
typically comprising seven P’s made up
of the original 4 P’s plus process,
people, physical environment/evidence
Emergence of the
Marketing Mix the 4ps
and 7ps Concept
1. Professor JAMES CULLITON
(1948)
 He is a professor of Marketing at
Harvard University.
 He published an article entitled: The
Management of Marketing Costs.
2. Professor
(1948)

NEIL BORDEN
It He wrote a retrospective article
giving the details of the early
history of the 4Ps.
 He credits himself with popularizing
the term “Marketing Mix”.
 He consistently used the term from
the late 1940s
3. E. JEROME McCARTHY (1960)
 the 4Ps in its modern form was
proposed in his textbook entitled:
Basic Marketing: A Managerial
Approach.
 He used the 4Ps as an organizing
framework for the entire work.
 It has been widely adopted.
4. PHILIP KOTLER
 he popularized the managerial
approach and with it, spread the
concept of 4Ps.
 Service marketers were thinking
about the revision of the general
marketing mix.
 Services were fundamentally
different from products.
5. BOOMS and BITNER (1981)
 Modifying the marketing mix
happened in the early 1980s.
 Proposed the model of the 7Ps.
 It is comprised of the original 4Ps
plus Process, People, and Physical
Evidence
ELEMENTS OF MARKETING
MIX (7 Ps)
1. PRODUCT
  Modifying Refers to what the  The firm is
business offers for sale and may interested in sales
include products (goods) or services. growth.
 A product is anything that can be b. Profit Based
offered for satisfaction  The firm is
Strategies for Mature interested in
maximum profit.
Products c. Status Quo
1. Develop new uses or functions
 The firm seeks to
and new purposes for products. avoid reasonable
2. Develop new or add latest government actions,
product features. minimize the effects
3. Find new classes of consumers of competitor
or new potential markets for actions, and maintain
present products. the good channel
4. Find new classes of consumers relations. The goal of
for modified products. the company is to
5. Increase product use for new maintain good image
product users. to the community by
6. Change marketing policies or creating projects/
strategy programs that
PRODUCT STRATEGIES protects its welfare
1. Breadth Strategy and goodwill.
 is reaching multiple 2. Broad Price Policy
segments with a single o provides procedures, rules, and
product. methods to act in one specific
2. depth Strategy situation
 is serving one segment a. Penetration pricing
with multiple products  uses low prices to
3. Tailored Strategy capture/attract the
 is customizing products market the
for each segment. larger/mass market
for a product or
2. PRICE service.
 Refers to the total cost for b. Skimming pricing
customer to acquire the product.  uses high prices to
 It may involve both monetary and attract the market
psychological costs such as the time segment more
and effort extended in acquisition concerned with
FIVE STEPS IN DEVELOPING A product quality,
uniqueness, or
PRICING STRATEGY status than price.
1. OBJECTIVE 3. PRICE STRATEGIES
o may be: sales-based, profit-
o are ways or some actions to
based, and status-quo based. accomplish the goals and
a. Sales Based
 objectives of the company in customers buying the
gaining profit. product or service
a. Sales Based Cost under similar
 based price strategy conditions.
It is d. Flexible pricing
when the firm sets  is based on
prices by computing customer’s ability to
merchandise, services negotiate or buy
and overheads costs power of the
then adding desired customer.
profit to those e. Odd pricing
figures.  are prices set at
b. Demand-based price levels below even
strategy values.
 It is when the firm f. Price-quality association
sets prices after  is when the
researching consumer customers believed
desires and make that high price
sure the range of represents high
prices is acceptable quality and low
to the target prices represent low
market. qualities.
c. Competition - based price g. Prestige pricing
strategy  is when customers
 It is when the firm set price floors and
sets prices in will not buy at
relation to the prices below those
competitors. floors.
4. IMPLEMENTING PRICE STRATEGY h. Leader pricing
o is the firm readiness to sell the  is selling key items
product which would be effective at low prices to gain
if the given an attractive price consumer loyalty
strategy listed below: within its product
a. Customary pricing line.
 is when one price is i. Multiple-unit pricing
maintained over an  is when the
extended period of entrepreneur offers
time. discounts to
b. Variable pricing consumers for
 is when the price buying in large
responds to costs quantities.
fluctuations or j. Price lining
differences in  is when instead of
demand. setting one price for
c. One-price policy a single model of a
 is when the price is good or service, the
charge to all firm sells two
 models of different  This happens when
quality and features the contract which
at different prices. allows price increase
k. Price bundling after the sale is
 is when the firm concluded before the
offers a basic delivery is made.
product, options, and c. Surcharge
customer service for  It is the
one total price. supplementary to list
l. unbundled pricing prices. These are
 is when the firm additional charges
sells by individual added to the total
components and prices.
allows customer to d. Mark-Ups
decide what to buy.  It is when the
m. Geographic pricing company is raising
 is when the prices regular selling prices
are set depending on because demand is
the distance of the unexpectedly high, or
buyer to the seller costs are raising.
n. TERMS OF PAYMENTS e. Markdowns
 These are the price  These are the
agreements, including reductions from
discounts, timing of original prices to
payments and credits meet lower prices of
agreements. competitors and
discounts: overstocking.
o Paying in cash 3. PLACE
o Performing  This is the place where your
certain customers buy your product and
functions how you make it available to them
o Buying large to view and evaluate it.
quantity  It is defined as the “direct or
o Off-season indirect channels to market,
buying geographical distribution, territorial
5. PRICE ADJUSTMENTS coverage, retail outlet, market
o This refers in changes in cost, location, catalogues, inventory,
competitive conditions and logistics and order fulfillment.
demand require changes in price  Place refers to either Physical
a. List Prices These location or Virtual Stores.
 are regularly quoted 1. Direct channel distribution
prices to customers, o is the transfer or movement of
as in catalogs, price goods and services from
tags and purchase manufacturer to final user or
orders. customer without the
b. Escalator Clauses
 intervention of independent organizations, people, places, and
middlemen. ideas that is transmitted through
2. indirect channel distribution various media but not paid for
o is the transfer or movement of by an identified sponsor.
goods and tangible products and 3. Personal selling
services or intangible goods from o involves oral communications with
manufacturer or producer to one or more prospective buyers
independent intermediaries. by paid representatives for the
INTENSITY OF CHANNEL COVERAGE purpose of making sales.
1. Exclusive Distribution
o is the limited number of 4. Sales Promotion
middlemen used in geographic o involves paid marketing
area. communication activities that
2. Selective Distribution stimulate consumer purchases
o is organizing a moderate number
and dealer effective.
of wholesalers or retailers. 5. PEOPLE
3. Intensive Distribution  It can be considered as product by
o is organizing a large number of providing satisfaction to the
middlemen that are used to consumer. Business can improve
obtain widespread market their ability to attract, retain and
coverage and channel acceptance. improve the productivity by applying
the five-step PRIDE process.
4. PROMOTION Letter P
 Refers to “the marketing
communication used to make the  Provide a Pleasant Working
offer known to potential customers Environment
and persuade them to investigate it Letter R
further”.  Recognize, Reward and Reinforce the
 Promotion elements include Good Behavior
“advertising, public relations, direct Letter I
selling and sales promotions.  Involve and Participate in the
Promotional Mix activities and programs
 is a combination of the strategies Letter D
to accomplish the promotion  Develop skills and Attitude
objectives of an organization. These Letter e
are the following:
 Evaluate and Measure Performance
1. Advertising
o is a paid, non-personal 6. PROCESS
communication regarding goods,  It refers to a set of activities that
services, organizations, people, results in delivery of the product
places, and ideas that is benefits.
transmitted through various  could be a sequential order of
media. tasks that an employee undertakes
2. Publicity as a part of their job.
o is a non-personal communication 7. PHYSICAL EVIDENCE
regarding goods, services,
  The lasting proof that the service
has happened, in terms of buying a
physical product, the physical
evidence is the product itself.
 It is important to customers
because the tangible goods are
evidence that the seller has (or has
not) provided what the customer
was expecting
Lesson 2
4Ms OF
OPERATION
the 4m’s of operation
1. MANPOWER REQUIREMENTS
 Manpower, personnel or laborer should
be listed accordingly, from the
managerial position, supervisory
position to the staff or workforce
needed in the operation of the business
Qualification Standards
o Three kinds of Qualification
standard of choosing newly hired
employee
Manpower
o This refers to the personality
required to a worker’s traits
manners, values, the way he
talks, appearance and his overall
physical attributes.
Experience
o This refers to the length of
working experience in relation to
the job criteria required as a
worker, and also that a worker
applied for.
Academics
o This refers to the worker’s
academic qualifications or the
educational attainment required
to perform the job letter
Important notes:
1. It is important to identify the key people who
will manage the business.
2. The owner and management team should have
good track record to help the company grow
RESUME can be successful.
3. A oresume should be
A resume is attached
a one- intothetwo-page
business
formal documentplan. submitted to
job recruiters as means of
showing a list of an applicant's
work experience, education and
skills.
o A resume should be attached in
the business plan that includes
the following information:
1. Name
2. Position (include brief position
description along with primary
duties)
3. Primary responsibilities and
authority
4. Education (highest attainment)
5. Unique experience and skills
6. Prior job employment
7. Special skills
8. Past track record
9. Industry recognition and
awards
10. Community involvement/
participation
11. Number of years with the
company
12. Compensation basis and levels
13. Quantify achiever
Steps in coming up with the
criteria for selecting
applicants
1. List down all the different activities
that have to be done in the
business. Group this according to
the four functional areas of  It is the backbone of the
management business. They are assigned
(4) FOUR FUNCTIONAL AREAS OF to handle the business,
MANAGEMENT planning, decision-making
MARKETING and also financial review.
 This department is 1. Ordering of Supplies.
responsible for promoting 2. Sales Contract
the business to generate preparation and
sales and help the company Business permits
to grow renewals.
1. Sale and Delivery of 3. Keeping and
Products to buyers. Maintenance of
2. Delivery of products Personnel Records.
to buyers. 4. Business
3. Promotion and Communication and
Advertising Inquiries.
2. In the list of activities, it should
PRODUCTION exclude the list that will be taken
 This department is by the owners. The tasks should be
concerned in manufacturing translated into job designations or
the products, where the position titles.
inputs (raw materials) are 3. List the entire qualification
converted into finished requirement for every position in
product through a series terms of education, experience,
of production process training, etc.
1. Product manufacture
or service delivery 2. METHOD
2. Machine operation  represents the day-to-day operations
3. Repair and of a business
Maintenance. Manufacturing
4. Quality Control o is the process of converting raw
5. Raw materials and materials into finished product.
Finished Products o The sequence of operations
FINANCE should be clearly defined to
 They are responsible for ensure proper execution thus
accounting, auditing, assuring the consistency of the
planning, and organizing quality of the product.
the company’s finances Production Schedule
1. Bookkeeping o Timetable for the use of
2. Payroll preparation resources and process required
3. Settlement of by a business to produce goods
payables and or services.
collection of plant size production schedules
receivables. o determined based on the
4. Petty cash
projected demand.
managements
ADMINISTRATION Forecasting
 o A planning tool that helps does not become an integral part
management in its attempts to of the product
cope with the uncertainty of the i. Utilities includes, power, water, and
future. sometimes gases and steam
3. MACHINE depending on the type of product or
services.
 After the plant size was determined,
ii. Waste disposal and waste treatment
the machinery and equipment required
facilities are necessary to protect
can be identified
the environment.
 It is an apparatus using or applying
iii. The production cost is the sum of
mechanical power and having detailed
direct cost, and overhead expenses.
specifications should be prepared
iv. The product-mark up or profit is
including its function and the number
the amount to the total production
of units required.
cost.
i. The origin of machine whether
local or imported and the
country of origin should be
known.
ii. The specification of a
manufactured product normally
include the general and technical
descriptions.
General Description
o It states the basic description of
the product and services.
Technical Description
o It includes the detailed
information related to the design
and construction of products.
4. MATERIALS
 are used in the manufacture of raw
materials into finished goods.
 The materials include both direct and
Indirect or consumable materials. The
specifications, quantity needed, and
schedule of delivery should be clearly
stated.
Direct Materials
o are raw materials that are made
into finished products
Indirect Materials
o (as tools, cleaning supplies,
lubricating oil) used in
manufacturing processes which
 Operating Expenses
o Operating expenses are the costs
of a company's main operations:
1. Selling Expenses
 Refers to cost directly
related to selling,
advertising, and delivery of
a company’s goods and/or
services to the customers.
eXAMPLES
 Salesmen’s salaries,
commissions and bonuses
 Travelling and
Transportation expenses
 Advertising and Publicity
Lesson 3 expenses

INCOME
 Delivery expenses
 Sales Taxes
2. Administrative expenses

STATEMENT
 Also called general
expenses; cost incurred in
administering the
company’s business.

AND BALANCE eXAMPLES

 IT SERVICES COST
 INDIRECT LABOR SALARIES AND

SHEET
WAGES
 FINANCE AND INSURANCE COS
 OFFICE MAINTENANCE
 BUILDING RENT, AND
INCOME STATEMENT MAINTENANCE COST
OTHER eXAMPLES
 Salaries and Expenses of
INCOME STATEMENT general executives and of
the general accounting and
 It reports income and expenses activity credit departments;
for a specific period of time.  Contributions
 Profit is reflected in the owner’s  Professional Fees
equity section of the balance sheet by  Depreciation of Office
using the expanded accounting equation: Buildings and Office
Assets = Liabilities + Owner’s Equity Equipment
It starts with:  Amortization of Intangible
Assets
Sales
o commodities actually sold by the
company. BALANCE SHEET
  These items comes in

BALANCE SHEET the form of:

a. Finished Goods
– Completed
 A statement of the financial condition
of an enterprise at a given point of products ready
time, usually on yearly basis. for sale.
 The two most important financial b. Goods (Work)
statements of an enterprise are the in Process –
income statement and the balance Partially
sheet. completed
 The balance sheet is composed of three products
basic parts: assets, liabilities, and requiring
capital (owner’s equity). further
 It shows what the company owns, what processing
it owes, what the company has before being
invested, and the accured profits or made available
losses. for sale.
 Conventional accounting equation (Asset c. Raw Materials
= Liabilities + O.equity) – Yet to be
processed in
A BALANCE SHEET INCLUDES: the company’s
Assets operational
o Something valuable that an entity activities.
owns, benefits from, or has use d. Factory or
of, in generating income. Manufacturing
1. CURRENT ASSETS Supplies – like
 Items which could be easily raw materials,
realized or can be easily but is not
be converted into cash or physically part
sold during a normal of the
operating cycle. manufacturer
a. Cash process (not
 can be “on hand” manufactured
and/or “in bank”, by the
local. company, it
b. Inventories came from
other
 stocks of raw
company).
materials, stocks in-
process or finished Example
products which have Candy
been altered or wrappers,
converted into “other Boxes and
forms” before being Bottles of
made available for food products
sales. 2. INVESTMENTS
  Tangible and intangible  Cost of Printing
assets which are purchased Certificate of Ownership
which future benefits (Stocks) and other
is/are expected. printed requirements of
Example: the company normal
 Machineries and operating cycle.
merchandise, Granting of Liabilities
study grants, scholarships, o Accounts and wages payable,
seminars etc. accrued rent and taxes, trade
3. FIXED ASSETS debt, and short and
 Assets of relatively long term loans.
permanent nature, used in Net Worth
company’s business o The value of the business after
operations, NOT FOR SALE. deducting what the business
Example: owes.
 Land, Buildings, Machineries,
Equipment, Furniture, and
Fixtures.
4. INTANGIBLE ASSETS
 Long-lived assets with no
form of physical
characteristics.
 Value could be traced in
the form of rights,
privileges, and competitive
advantages.
Example:
 Patents, Good wills,
copyrights, franchise,
trade marks.
5. OTHER ASSETS
ORGANIZATIONAL COST
 expenses incurred in the
forming organizing or
establishment of business.
Example:
 Legal fee (Registration
fees)
 Promotional and Under
writing fees (fee
charged for verifying
the information on the
loan application and
making final decision to
approve it.
 JOB DESCRIPTION
 It defines the duties and
responsibilities of a
particular position.
 Essential part of hiring
and managing employees
 It ensures that employees
understand their roles and
what they need to do.
 Good Job Description
typically begin with a
careful analysis of the
important facts about a
job.
 .Job Description include:
(content of Job
Lesson 3 Description)

ALL ABOUT
Job Specification
 it gives the specific
qualifications required for
the such as type

RECRUITMENT experience needed for the

job, special training, skills
and physical demands,
special abilities, aptitude,
RECRUITMENT age, physical qualifications
and other requirement
 It is the process of convincing or 2. Requisition of New Employee
encouraging a prospective applicant to o A formal requisition form is
fill in a vacant position. Recruitment required
process includes: o indicating the position to be
1. Analyzing the requirements of a filled
job; o date needed
2. Attracting the employees to that o qualifications and other
job; requirements needed for an
3. Screening and selecting applicant.
applicants;
4. Hiring
3. Actual Recruitment of
5. Integrating the new employee to applicant/s.
the organization. o Sources of applicants can be
STEPS IN RECRUITMENT internal or external.
SOURCES OF APPLICANT
1. Study the different Internal
company jobs and write  Employees recruited within
its description and the company.
specifications External
  Applicants recruited 5. Final Interview by Immediate
through advertisement,
referrals, placement
Supervisor or Department
agencies, etc. Head
o To determine who among the
SELECTION
applicants should Be hired and
fitted for the job
6. Physical and Medical
 It is the process through which
organizations identify and make Examination
decisions about the applicant/s who will Medical Examination
be allowed to join in the company.  Helps to determine if the
 The selection process should be able to applicant is fit
 identify the applicants that have the to work or to find out
following: health concerns
o Knowledge that might hinder him to
o Abilities work
o Skills Pre – Employment Test
o Other characteristics required.  background check is
essential in hiring an
STEPS IN SELECTION employee to obtain
1. Reception of Applicants important information of
o it involves screening of the applicant
applicants by which applicants  Essential to check the
are interviewed employee’s work
2. Filling out of Application performance and his ability
to do a specific job and
Form other essential information.
o This serves as a guide in
interviewing the applicant. This is 7. Hiring
to determine if the applicant o The applicant who passed the
matches the job requirements. selection requirements is sent to
This is also a basis in checking the Human Resource Department
the applicant’s school records, (HRD) for final completion of
former employers and hiring process.
references. 8. Orientation
3. Preliminary Interview o The new employee/s are oriented
o Its main purpose is to check if on company policies, rules and
the applicant is qualified for the regulations and informed Or
position and eliminate those directed about his job.
applicants who are disqualified
4. Employment Test
o This is given to measure the
applicant’s abilities needed for
the job