Palm Valley Multiple Intelligence School

Alaminos Heights Subd.Alaminos, Laguna

School Year 2022 - 2023

Entrepreneurship
Grade 11 STEM/ ABM/HUMSS

Lecture 6

The Marketing Mix

The marketing mix is a widely accepted strategic marketing tool that combines the 4 Ps ( product , place,
price ,and promotion ) with the additional 3 Ps – people , packaging and process.
The 7 Ps are :
1. Product – is any physical good , service , or idea created by an entrepreneur or an innovator in serving the
needs of the customers and addressing their existing problems.
2. Place – refers to a location or the medium of transaction.
Physical location – the entrepreneur considers the area’ population , the traffic , the people’s common
path , their buying behaviour and their preferences.
Cyber location – using the Web in having the business.
3. Price – is the peso value that the entrepreneur assigns to a certain product or service after considering its
costs , competition , objectives , positioning and target markets.
Most common pricing strategies:
a. Bundling – refers to two or more products or services in one reduced price. Example 3 in 1 coffee
Manicure pedicure service
b. Penetration pricing – refers to setting low prices to increase market share but eventually increase the
price if the desired share has been achieved.
c. Skimming –opposite of penetration pricing where prices are initially high and then lowered to offer the
product or service to a wider market.
d. Competitive pricing – refers to benchmarking prices with the competitors.
e. Product line pricing – refers to pricing different products or services within the parallel product array
using varying price points.
f. Psychological pricing – considers the psychology and positioning of price in the market.
g. Premium Pricing – refers to setting a very high price to reflect elitism and superiority.
h. Optional Pricing – refers to adding an extra product or service on top of the original to generate more
revenue.
i. Cost –based pricing – the basis of mark-up is the cost of sales. Example coconut juice cost is P 10.00
then add the plastic cup costing P 4.00 the selling will be P20.00 and earn P6.00.
j. Cost plus pricing – the mark – up is based on a certain percentage of cost. Example the entrepreneur
wants a 50% mark up total cost multiply to the percentage then add the product to the cost.

P14 x .50 =P 7 P 7 + P14 = P 21 .00

Two classification of costs:
j. 1. Variable costs or controllable cost – costs are directly proportional to the number of products or
services performed.
j.2. Fixed costs or uncontrollable costs – costs that are not directly proportional to the manufacturing of the
product or service. Cost in equipment , payment to the employee , rental costs and utilities.
4. Promotion – involves presenting the products or services to the public and how these can address the
public’s needs , wants problems and desires.
The tools of promoting are the following:
1. Advertising
Objectives of advertising:
a. informing, educating , and familiarizing the public with the product and service offerings
b. building a trustworthy image
c. increasing sales
Channels of advertising;
Radio – AM/FM
Television – regular channels , cable TV
Internet – e mails , Web sites , blogs , social media , search engines and podcasts
Mobile phones – text messages , mobile applications
Print – newspapers , magazines , flyers , directories , signages , posters
Out- of- home – billboards , buses , bus stops , trains , train stations , taxis , street advertisements
2 Selling
- Convincing power to sell the product
3. Sales promotion
Promotional gimmicks such as :
Sales discounts
Raffles
Contest and games
Product or service bundles
Trade fairs or exhibits
Sample distribution or free taste
Premium ( free toys for fast food meals)
Points of purchase promotions
Advertising specialties ( pens , umbrellas , notebooks)
Rewards

Prepared by:

Ana Belen D. Mojica