What is Marketing?

Marketing defines as an organizational function and a set of process for creating, communicating, and
delivering value to customers and for managing customer relationships in ways that benefit the
organization and its stakeholders. (Kotler and Keller 2007, 3). It is also the performance of activities
that seek to accomplish an organization’s objectives by anticipating customer or client needs directing
a flow of need-satisfying goods and services from producers to customer or client. (Canon, Perrault,
and McCarthy 2008). It is important to know the different needs of your customers in order for your
product or service meet their needs.

Overview of Marketing Mix In 1948, the 7P’s of marketing article has been published by
Harvard University professor James Culliton in which he describes as “mixers of ingredients.”
Later on, his colleague Neil Borden (1960) reinvent the term “marketing mix” which composed of
12 elements such as; product planning, pricing, branding, channels of distribution, personal
selling, advertising, promotions, packaging, display, servicing, physical handling, and fact-
finding analysis.

In 1960, Northwestern University professor Edmund Jerome McCarthy proposed the

conceptualization of 4P’s that focused into 4 elements, namely: Product, Price, Place, and
Promotion that only caters to “product industries”. To enable the “service industries” adopt the
said elements, three additional P’s are formed—People, Physical evidence, and Process (Booms
and Bitner 1993).

These are the elements of 7P’s:

 Product. It could be tangible or intangible in nature that can be offered for the satisfaction of
consumers.
 Price. It determines the value of goods or service to the buyers and sellers. It also includes the
production cost.
 Place. The location wherein the product is being processed and where can the consumers buy.
 Promotion. A marketing strategy in which it is used to inform and persuade your target consumers
about your product.
 People. They are the ones who provide information about the product that provides consumer
satisfaction.
 Process. A set of activities that results in the delivery of product benefits in a standard procedure.
 Physical evidence (environment). Includes product packaging, delivery receipts, signage, or the
layout of a physical store.

Importance of Marketing Mix

All the elements of the marketing mix influence each other. Each element can be independently
examined but in practice, they are dependent to each other. Identifying and arranging the elements of
its marketing mix allows a business to make profitable marketing decisions at every level by
generating a great marketing plan. These decisions help a business:
 Develop its strengths and limit its weaknesses.
 Become more competitive and adaptable in its market.
 Improve profitable collaboration between departments and partners. Ways to identify your marketing
mix
 Know your target market.
 Identify your sales and growth, as well your budget for marketing strategies.
 Set a marketing tactic to be used that will help you to reach you target audience and achieve those
goals.

Marketing Mix: Place “Location, Location, Location.”

This is the often-recited mantra of salespeople who wants to have the best access to their customers.
The place at which the transaction occurred is of vital importance. Another P of the 7 P’s of Marketing
is the Place, also known as the distribution channel. Place or Location plays a vital role in every
aspect of human life as well as in marketing. If you are a new producer of goods, getting your product
to your market, wherever they may be, can pose quite a challenge. So Place or the distribution
channel is to effectively reach your market. The objectives of an efficient place are to effectively reach
your market, and to minimize cost of dissemination.

Relevant Location Drivers in Choosing a Place

There are many factors to consider in choosing a place which is so efficient to make the business
vital .Here are some factors that may cause the location or place to be effective .

1. Physical Proximity to Target Market

For most entrepreneurs, locations are chosen based on how close it is to the target market.
Ideally, the best locations should be easily accessible from home or from the work place.
However, physical proximity is not always important. For instance, most parents send their kids
to the nearest elementary or High school.
2. Customer Traffic Flow
Customer traffic flow refers to the people that regularly come into contact with your business
establishment. Your shop might not be near to your customers’ homes or work places, but it
might be situated somewhere along their daily routes. Higher traffic flows mean higher drop-in
rates for stores along the traffic route.
3. Industry Clustering
A lot of competitors clustered in one location usually draw in a bigger market to the area. Three
stores side-by-side offer more choices to customers than one standalone store. The downside
is that clustering also results in fiercer competition.
4. Convergence of Multiple Industries
Locations where multiple industries converge, such as central business districts, shopping
malls, and public markets are able to attract more customers because of one-stop shopping
convenience. But again, competition is strong in such areas.
5. Population Concentrations
Urbanization creates population concentration. Where people live, goods and services follow.
The greater the number of people, the greater the number of needs and wants to be satisfied.
Simply put, the more the populous the location is, the greater is the opportunity for business
and profit.
6. Activity Hubs
Activity hubs such as large schools, high rise buildings, public parks, transport terminals, and
entertainment centers provide good location potentials for food establishments and client-
specific services.
7. Growth Potential
Businesses are always looking for new areas to expand and grow. This is especially true when
crowded population centers become saturated with many providers of goods and services.
Hence, the new development site will be the natural greener pasture for early locators. The
early locators will catch the early customers.
8. Business Climate
Enterprise prefer locations that are conducive in doing business such as high economic
growth, stable political situation, effective social services, good infrastructures, cheap utilities
availability of skilled labor force, low crime rates etc.

Types of Distribution Channels

A manufacturer may plan to sell his/her products either directly or indirectly to the customers.
In case of indirect distribution a manufacturer has again an option to use a short channel
consisting of few intermediaries or involve a large number of middlemen to sell his/her goods.
Therefore, a various channel networks having different number and types of middlemen.

1. Direct Channel
 It is the shortest and simplest channel of distribution of goods from manufacturer to
customers. It is called as zero level channel of distribution as it does not involve any
intermediary. It also facilitates direct relationship between the manufacturer and customer.
Example: e business (selling through internet); Direct selling, etc.

2. Indirect Channel
When a manufacturer employs one or more intermediaries to sell and distribute their
product to the customers it is called as indirect selling. In this, goods move from the point of
production to the point of consumption through a distribution network. This channel of
distribution involves manufacturers using the services of agents or brokers, wholesalers,
dealers, and retailers.

FACTORS TO CONSIDER IN PRICING

Nothing can cause confusion and doubt in a business like pricing your products and services. While
you don’t want to charge less than you are worth, you also don’t want to price yourself out of the
market, so how do you know if your price is right? Whether you are starting out or starting over, here
are five factors to consider when pricing your products and services.

1. Costs
First and foremost you need to be financially informed. Before you set your pricing, work out
the cost involved with running your business. This include your fixed costs (the expenses that
will come in every month regardless of sales) and your direct costs (the expenses you incur by
producing and delivering your products and services.)
2. Customers
Know what your customers want from your products and services. Are they driven by the
cheapest price or by the value they receive? What part does price play in their purchase
decision? Also look at what are you selling, are your current customers buying highend or low-
end products and services?
3. Positioning
Once you understand your customer, you need to look at your positioning. Where do you want
to be in the marketplace? Do you want to be the most expensive, luxurious, high-end brand in
your industry, the cheapest, beat it by 10% brand or somewhere in the middle? Once you have
decided, you will start to get an idea of your ideal pricing.
4. Competitors
This is one of the key times you can give yourself permission to do a little competitor snooping.
What are they charging for different products and services? What inclusions and level of
service are they offering for those prices? What customers are they attracting with their
pricing? And how are they positioned in the marketplace? The answers to these questions will
give an industry benchmark for your pricing.
5. Profit
One of the most important questions business owners neglect to ask themselves is “How much
profit do I want to make?” They tend to look at what others charge and then pull a figure out of
the air to be competitive without giving consideration to how much profit they want and need.
While you may be in business for the passion and to add value to the lives of others, you also
need to add value to your own. So give careful consideration to what your time is worth.

PROMOTION - According to (The Economic Times 2020, 1) promotion refers to the entire set
of activities, which communicates the product, brand or service to the user. The idea is to
attract and induce people to buy the product, in preference over others.
 The aim of promotion is to communicate with the largest target potential target audience.
 Promotion helps draw new customers, boost sales to current, and promote awareness of the
brand name. Promotion should be designed to…
  Create an awareness and understanding of businesses or goods to introduce new products,
inform customers or changing prices, and explain innovative services.
 Persuade customers about the benefits or the use of a certain products or patronization of a
businesses.
 Remind customers where to buy certain products, to promote purchases, and to promote
further purchases.

PROMOTIONAL MIX – (Roth 2020, 1) promotional mix refers to the specific combination of
the tools, channels, and processes you use to promote your offerings. It’s what you say, how
you say it, who you say it to, what channels you use to reach them, and how often you
communicate. Traditionally, the promotions mix was composed of advertising, sales
promotions, public relations and personal selling. Today the promotions mix has been updated
to reflect new realities in the communications environment. According to (Alan 2020, 1)
Today’s promotion mix consist of ATL, BTL and TTL.

1. ATLM stands for ‘Above the Line Marketing.’  This form of marketing is a type of marketing
that has a very wide scope and is mainly untargeted. Think about a national TV campaign where
viewers across the nation see the same advert aired across the various networks.  This form of
marketing is often used to create brand recognition and goodwill.

2. BTL Marketing stands for ‘Below the Line Marketing.’  This kind of marketing is the kind of
marketing that targets specific groups of people with focus.
a. Sales Promotions – are tools best used for convincing the market into immediate action. Most
common types of sales promotions tools:
 Product samples – handouts, trial packages, taste tests
 Coupons – entitled to a special discount
 Price packs – product bundles for discounted price
 Premiums - free items that are bundled with products
 Advertising Specialties – promotional items that are given as token of appreciation
 Patronage Rewards – rewards points in exchange for items
 Point of Purchase Promotions – convince people on the spot
 Contest and Games – raffles, games, and spot features in TV variety shows (such as sponsorship
of noontime variety show)

b. Public relations – concern with public opinion

 Press relation – press conference
 Product publicity affairs – help launch a new product
 Public service activities – include outreach program and civic activities
 Special events – annual activity like marathon, company sports etc.
3.TTL Marketing’ stands for ‘Through the Line Marketing.’ This kind of marketing is really an
integrated strategy where a company can use both BTL and ATL marketing approaches to meet their
consumer base and produce sales. It can be defined as the use of mass advertising forming a
prospect or customer database, which can be implemented for direct marketing activities.
Packaging refers to the appearance of your product or service from the outside. It is the process of
creatively designing or producing wrapper, covering, or container of a product used to protect,
promote, and transport its product. It has product label or insert.
Label is a part of a product package that contains information about the product that targets what
customer needs to know, like the ingredients used to produce the product, the instruction for use,
safety information, or precaution in the case of chemicals, medicines, and toys, manufacturing date
and expiration date; manufacturing address, and logo

Levels of Packaging
1. Primary Package – the product’s immediate container. Example: The bottles of medicines, the
plastic container of ice cream, the can of milk powder, the glass container of a sandwich spread.
2. Secondary Package – refers to another package that protects the primary package, and that is
thrown away when the product is about to be used by the consumer. This will serve as an added
protection for handling and especially during transport. Example: The box used to contain the bottle of
medicine. The box of toothpaste for additional protection and promotion.
3. Tertiary Package – refers to the bigger package that totally supports the product. Tertiary
packaging is typically not seen by consumers. Example: The big boxes that hold dozens of big or
small bottles for safety transport and product shipment.

Brand is a mark of differentiation that can be sensed usually in the form of names or terms and signs
or symbols. Brands are developed, expanded and managed in order to maximize its value to the
business and consumers. Wellmanaged brands give the product a good evaluation and mark to the
customers.
According to Canon, Perrault, and McCarthy (2008, pp. 86), branding means “the use of a name,
term, symbol, or design-or a combination of these- to as a marketing tool to identify a product.” It
involves developing mental structures and assisting consumers organize their knowledge about
products and services in a way that simplifies their decision making. It includes the use of the brand
names, trademarks, and other means of product identification. Brand names play a part in the
marketing strategy of the product. A brand name has a narrow meaning. It is a word, letter, or a group
of words or letter. Examples of this are: Datu Puti, Downy, Tide, Colgate and Bench.

Elements of a Brand
1. Trademark is a legal term. It includes only those words, symbols, or marks that are legally
registered for use by a single company. A service mark is the same as a trademark except that it
refers to a service offering.
2. Logo is the visual symbol or image that identifies the product, such as the distinctive partially bitten
apple image of Apple, or the stylized script letters of Coca-Cola. Below are examples of recognized
trademarks and logos.
3. Taglines are optional catch-phrases, such as BDO’s “We find ways.”
4. Generic category is a category in which the brand would fall under such as beverage, search
engine, or quick service restaurant. Aside from the actual logo, brands can also be represented with.
5. Visual cues are the distinctive visual identifiers, such as the green and red line of Seven –Eleven.
6. Even the shape varies or the actual shape or form of the products packaging, such as the shape of
Coke bottle.
7. Sounds as advertising jingles such as M. Lhuillier – “Ang tulay ng Pilipino, maaasahan at
sigurado.”
8. Scents and taste- signature fragrance and special recipes or secret ingredients. Example is the
sweet Filipino style of Jolly Spaghetti and the aromatic Chicken Joy of Jollibee.