School Academy of St.

Joseph Quarter Second

Mr. Christian M. Agbayani
Teacher 09155272740
Contact Number Mr. Doel S. Cachapero II Week 1–2
09056395181

Grade Level and GRADE 12- ENTREPRENEURSHIP Number of

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Learning Area Days

Most Essential Learning Competencies (MELCs):

 Recognize the importance of marketing mix in the development of marketing strategy
 Describe the marketing mix (7Ps) in relation to the business opportunity vis – a – vis:
Product, Place, Price, Promotion, People, Packaging, Positioning
 Develop a brand name

Hello Grade 12 learners! Welcome to the part where knowledge will be

learned. You will be provided with activities that will test your prior
knowledge, stimulate your interest, and elevate your understanding and
level of excitement in the different activities. This part of the module will
help you get started and be mentally ready for the next parts.

The Marketing Mix: 7Ps of Marketing

Marketing Mix – is a widely accepted strategic marketing tool that combines the original 4Ps with additional 3Ps
in formulating marketing tactics for a product or service.

- Employed until the entrepreneur finds the right combination that will most effectively serve the
customer’s needs and wants and at the same time achieve the profitability objective.

Entrepreneurs must use the 7Ps model to do the following:

1. Conduct a situation analysis

2. Set objectives
3. Conduct SWOT or competitive analysis
4. Ultimately come up with marketing strategies and tactics

Key Questions

1. Product ---What Product is most appropriate for the opportunity and why will customers buy or
avail them?
2. Place -- What location is best suited for the business where there are more potential
customers?
--Can they conveniently transact on site or online?
--How is the process of distribution of products or performance of services?
3. Price – What is the most appropriate price, and what pricing strategies will be used for the
target customers?
4. Promotion – What is the most advertisement or combination of advertisements, and which
advertising tools should be used to drive awareness and increase sales?
5. People – What type of people need to be hired?
--What are the basic skills needed for the job?
--What leadership style will be applied by the entrepreneur?
6. Packaging – What is the best packaging for the product that is attractive enough to customers
and cost – efficient at the same time?
--What physical evidence does the entrepreneur need to set up so as to sell the
service?

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 7. Positioning – What is the most compelling feature of the product or the business that will
make a difference in the lives of the customers?
--What sets the product or service from the rest?

I. PRODUCT (OR SERVICE)

- Any physical good, service or idea that is created by an entrepreneur or an innovator in
serving the needs of the customers and addressing their existing problems.
- The product or service should not be created before finding the right customers, because
this is very risky and the resources and time might be put to waste.
- Product is tangible and discernible items that you can physically touch, has packaging and
usually a shelf life which an organization produces.
- Service is the production of an essentially intangible benefit, either in its own right or as a
significant element of a tangible product, which through some form of exchange, satisfies
an identified need.
- The Three – level Concept of products and services summarizes the reasons that a
customer decides to buy a product or avail of a service.
o Level 1: Core Benefits of the Product or Service
 Major factors why a customer buys a product or avails of a service
o Level 2: Physical Characteristics of the Product or Service
 Once the core benefit is satisfied and options are available to the customers,
the tendency is to look for the second layer of selection
o Level 3: Augmented Benefits of a Product or Service
 Are only additional benefits a customer will still get the core benefits of a
product or service even without the augmented benefits.

Product Classification: Tangible or Intangible

A product can be classified as tangible or intangible.
 Tangible product is a physical object that can be perceived by touch such as building,
vehicle, or gadget. Most goods are tangible products. For example, a soccer ball is a
tangible product.
 An intangible product is a product that can only be perceived indirectly such as an
insurance policy.

II. PLACE
- Refers to the location or the medium of transaction. A strategic location depends on the
nature of the business and the primary target market.
o Physical Location – area’s population, the traffic, the people’s common paths, their
buying behaviour and their preferences for the location.
o Cyber Location – use web analytics data to understand website performance.
- Covers the product distribution and the whole business logistics. The logistics side of the
products should cover production, ordering and receiving raw materials or finished goods
from the suppliers, storage, reorder points, and transportation system.
- The logistics side for services covers the physical evidence or service scape, service
providers, and service delivery process, as well as policies and procedures of the business.

- Major Objective: to provide customers with pleasant experience in buying the product or
availing of the service so that they will keep on coming back whether on site or online.
- Characteristics 1. Presentable; 2. Appealing; 3. Catchy
- Criteria in Choosing a Location
o Suitability to the target market
o Condition of the neighbourhood
o Potential of the area for future developments

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 o Laws and regulations of the area
o Direct and indirect competitors
o Foot traffic
o Cost of doing business

III. PRICE
- The peso value that the entrepreneur assigns to a certain product or service after
considering its cost, competition, objectives, positioning and target market.
- It is the only P in 7Ps that generates revenue for the business.
- Your price should be high enough to make a profit, and low enough to encourage people to
buy it.
- The price depends on the product, the place, and the people.

o MOST COMMON PRICING STRATEGY

 Bundling – this refers to two or more products or services in one reduced
price (ex. 3 – in – 1 coffee for Php8.00)
 Penetration Pricing – setting low prices to increase market share, but the
entrepreneur will eventually increase the price once the desired market share
is achieved (ex. Introductory price)
 Skimming – opposite of penetration pricing where prices are initially high and
then they are lowered to offer the product or service to a wider market (real
estate companies whom offered top – tier projects is now offering low – cost
housing of same quality to serve the middle market segment)
 Competitive Pricing – benchmarking prices with the competitors (ex. Milk
tea prices are competitively priced)
 Product Line Pricing – pricing different products or services within parallel
product array using varying price points (ex. LED TV is more expensive than
LCD TV even if under the same brand)
 Psychological Pricing – considers the psychology and positioning of price in
market (ex. Price of haircut is at Php199 because customer tend to think odd
prices are considerably lower than what they are; in this example they round
off to Php100 instead of Php200)
 Premium Pricing – setting a very high price to reflect elitism and superiority
(ex. Prices of signature clothes, bags, perfumes)
 Optional Pricing – adding an extra product or service on top of the original to
generate more revenue (meals on top of airfare)
 Cost – Based Pricing – basis of mark – up is the cost of sales (ex. Cost of
coconut juice by adding the cost of coconut juice – Php10 and the plastic
container Php4. He or she can set the price at Php20 to earn Php6 per
coconut juice)
 Cost Plus Pricing – mark – up is based on certain percentage of cost (ex.
The entrepreneur wants to set a 50% mark – up on the coconut juice which is
Php14 * 50% = Php7, the new price is Php14 + Php7 = Php21)

2 Classifications of Cost
 Variable Costs or Controllable Costs – costs directly proportional to the number of products
manufactured or to the number of services performed

--costs incurred will be higher only when more customers avail of the service or it
will incur lower cost when there are few customers.

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  Costs or Uncontrollable Costs – costs not directly proportional to the manufacturing of a
product or to the performance of the service
--costs that are still incurred whether they provide more or less
--Examples: cost of equipment, employee salary, rental cost, utilities

GENERAL PRICING GUIDELINES

 Do not price the product or service below its cost.
 Monitor competitor’s prices and ensure that your prices are at par with them unless the product
or service is really way superior to the competitors’.
 Align the prices with the other 6Ps
 Implement prices strategies that are relevant to your market segment (ex. Sachet pricing is
more appropriate in the Barangay)
 Align prices with your business objectives

The Consumer Act of the Philippines (R.A. 7394) regulates the following in pricing:
 ARTICLE 81. PRICE TAG REQUIREMENT – It shall be unlawful to offer any consumer
product for retail sale to the public without an appropriate price tag, label, or marking publicly
displayed to indicate the price of each article and said products shall not be sold at a price
higher than the stated therein and without discrimination to all buyers. Provided, that lumber
sold, displayed or offered for sale to the public shall be tagged or labelled by indicating thereon
the price and the corresponding official name of wood. Provided further, that if consumer
products for sale are too small or the nature of which makes it impractical to place a price tag
thereon price list placed at the nearest point where the products are displayed indicating the
retail price of the same may suffice.
 ARTICLE 82. MANNER OF PLACING PRICE TAG – Price tags, labels, or markings must be
written clearly, indicating the price of the consumer product per unit is pesos and centavos.
 ARTICLE 83. REGULATIONS FOR PRICE TAGS PLACEMENT – The concerned department
shall prescribe rules and regulations for the visible placement of price tags for specific
consumer products and services. There shall be no erasures or alterations of any sort of price
tags, label, or markings.

IV. PROMOTION
- Involves presenting the products or services to the public and how these can address the
public’s needs, wants, problems, or desires.
- The primary target market should be identified because it will become the main audience.
- Main goal is to gain ATTENTION
- IMC (Integrated Marketing Communication Plan) should be devised to deliver compelling
messages effectively.
o KEY MARKETING MESSAGES FOR PROMOTION
 Value Proposition or Unique Selling Proposition of the product or service.
 Product or Service Image
 Business Image
 Business Values and Philosophy
o PROMOTIONAL TOOLS
 1. ADVERTISING
 Type of communication that influences the behaviour of a customer to
choose the product or service of the entrepreneur over the
competitors.
 OBJECTIVE OF ADVERTISING
o Informing, educating, and familiarizing the public with the
product and service offerings
o Building a trustworthy image

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 o Increasing sales
 `ADVERTISING CHANNELS
o Television – regular channels, cable tv
o Radio AM and FM Radio
o Internet – e – mails, web sites, blogs, social media, search
engines, podcast
o Mobile phones – text messages, mobile apps, mobile internet
o Print – newspapers, magazines, flyers, directories, signage,
posters
o Out – of – home billboards, buses, bus stops, trains, train
stations, taxis, street advertisements.
 2. SELLING
 Act of trading a product or service for a piece or a free
o Identify the target customers
o Research on target customers profile and behaviour
o Devise a convincing way to sell the product
o Handle objections
o Close a sale by leaving a convincing conclusion that triggers
purchase
o Monitor customer satisfaction (after sale)
 3. SALES PROMOTION
 Short term promotional gimmicks wherein practical incentives and
appealing activities are incorporated to entice the customers to buy the
product or avail of the service
 Also called, “below – the – line” promotion
 Usually implemented when the entrepreneur needs to reach a certain
sale quota. Involves time limit and sense of urgency.
 EXAMPLES OF SALES PROMOTIONS
o Sales discounts or discount coupons
o Raffles, contests and games
o Promo items, product or service bundles
o Sample distribution or free taste/free trials
o Premiums (free toys for meals)
o Point – of – purchase promotions (display stand in stores)
o Advertising specialties (pens, umbrella etc.)
o Rewards (reward cards)
 4. PUBLIC RELATIONS
 Image – building initiatives of the entrepreneur to make the name of
the business reputable to stakeholders, such as the target customers,
government agencies, business partners, media and the public.
 Do not directly promote the product or services
 EXAMPLES OF PUBLIC RELATIONS STRATEGIES
o Press conference
o Launching events
o Strong media relations through press kits
o Social responsibility events
o Lobbying (good relationship with government officials)
o Web public relations (blogs, social media, emails etc.

V. PEOPLE

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 - Referring to your target market. According to Entrepreneur.Com, target market is a “specific
group of customers at which a company aims its products and services. Your target
customer are those that are most likely to buy from you”
- With the influx of various competing products, one of the differentiators is how people or
employees make a difference in the lives of the customers. It is not about the quality of the
products anymore, but how employees serve customers. Employees have become a
major influence in the customers buying behaviour.
- For the employees to serve customers well, they should know their specific roles, must
be well – compensated and provided with benefits.

VI. PACKAGING
- How the product or service is presented to customers. It is the overall identification (look
and feel) of the product or service. This will determine the uniqueness of the product from
competitors. This is the first element that the customers see because they don’t know
what’s inside yet. It preserves also the shelf life of the product
- GOAL OF PACKAGING: Entice customers to purchase the product or service
- Establishes the brand’s identity, as well as Unique Selling Proposition
- Elements such as color, shape, size, materials, font and text, and graphics must be
considered
- Must be tested for its attractiveness and quality
- In selling services, the term servicescape was used to refer to the overall ambiance of the
place where the service is performed. For example, in spa business, the servicescape
should be cozy, service staff should be friendly, the massage bed should be comfortable
and clean etc.
- IMPORTANCE: Persuades a customer to try a product or avail a service based on what he
or she has seen. Sometimes it matters more than the product itself. Indeed, it must please
the eye of the beholder.

The Consumer Act of the Philippines (R.A. 7394) regulates the following on packaging:
 ARTICLE 77. MINIMUM LABELING REQUIREMENTS FOR CONSUMER PRODUCTS – all
consumer products domestically sold whether manufactured locally or imported shall indicate
the following in their respective labels of packaging
o Its correct and registered trade name or brand name;
o Its duly registered trademark;
o Its duly registered business name;
o The address of the manufacturer, importer, re packer of the consumer product in the
Philippines;
o Its general make or active ingredients;
o The net quantity of contents, in terms of weight, measure or numerical count rounded
off to at leat the nearest tenths in the metric system;
o Country of manufacture, if imported; and
o If a consumer product is manufactured, refilled or repacked under license from a
principal, the label shall so state the fact.
The following may be required by the concerned department in accordance with the rules and
regulations they will promulgate under the authority of this Act.
o Whether it is flammable or inflammable
o Directions for use, if necessary
o Warning of toxicity
o Wattage, voltage or amperes; or
o Process of manufacture used, if necessary
The above requirements shall form an integral part of the label without danger of being erased or
detached under ordinary handling of the product.

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  ARTICLE 78. PHILIPPINE PRODUCT STANDARD MARK – the label may contain the
Philippine Product Standard Mark if it is certified to have passed the consumer product
standard prescribed by the concerned department.

 ARTICLE 79. AUTHORITY OF THE CONCERNED DEPARTMENT TO PROVIDE

ADDITIONAL LABELING AND PACKAGING – whenever the concerned department
determines that regulations containing requirements other than those prescribed in Article 77
hereof are necessary to prevent the deception of the consumer or to facilitate value
comparisons as to any consumer product, it may issue such rules and regulations to:
o Establish and define standards for characterization of the size of the package enclosing
any consumer product which may be used to supplement the label statement of net
quantity, of contents of packages containing such products but this clause shall not be
construed as authorizing any limitation of the size, shape, weight, dimensions, or
number of packages which may be used to enclose any product.
o Regulate the placement upon any package containing any product or upon any label
affixed to such product of any printed matter stating or representing by implication that
such product is offered for retail at a price lower than the ordinary and customary retail
price or that a price advantage is accorded to purchases thereof by reason of the size of
the package or the quantity of its contents.
o Prevent the non - functional slack – fill of packages containing consumer products
 ARTICLE 80. SPECIAL PACKAGING OF CONSUMER PRODUCTS FOR THE
PROTECTION OF CHILDREN – the concerned department may establish standards for the
special packaging of any consumer product if it finds that:
o The degree of nature of the hazard to children in the availability of such product, by
reason of its packaging, is such that special packaging is required to protect children
from serious personal injury or serious illness resulting from handling and use of such
product; and
o The special packaging to be required by such standard is technically feasible,
practicable and appropriate for such product. In establishing a standard under this
Article, the concerned department shall consider:
 The reasonableness of such a standard;
 Available scientific, medical and engineering data concerning special packaging
and concerning accidental ingestions, illnesses and injuries caused by consumer
product;
 The manufacturing practices of industries affected by this Article; and
 The nature and use of consumer products
 ARCTICLE 84. ADDITIONAL LABELING REQUIREMENTS FOR FOOD – the following
additional labelling requirements shall be imposed by the concerned department for food:
o Expiry or expiration date, when applicable;
o Whether the consumer product is semi – processed, fully processed or ready – to –
cook, ready – to – eat, prepared food or just plain mixture
o Nutritive value, if any
o Whether the ingredients used are natural or synthetic, as the case may be;
o Such other labeling requirements as the concerned department may deem necessary
and reasonable.
 ARTICLE 85. MISLABELED FOOD – a food shall also be deemed mislabelled:
o if its labelling or advertising is false or misleading in any way;
o if it is offered for sale under the name of another food
o it is an imitation of another food, unless its label bears in type of uniform size and
prominence, the word “imitation” and, immediately thereafter, the name of the food
imitated.
o Its containers are so made, formed, or filled as to be misleading

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 VII. POSITIONING
- An effort to influence consumer perception of a brand or product relative to the perception
of competing brands or products.
- Its objective is to occupy a clear, unique, and advantageous position in the consumer’s
mind
- Positioning is developing a product and brand image in the minds of consumers. It can also
include improving a customer’s perception about the experience they will have if they
choose to purchase your product or service.
- Effective positioning involves a good understanding of competing products and the benefits
that are sought by your target market.

THE AIDA MODEL (ATTENTION, INTEREST, DESIRE, ACTION)

- An approach used by advertisers to describe the phases of consumer engagement with an
advertisement
A: Attention – create attention or awareness of your brand
I: Interest – create interest in the buyer for further information about your product/service
D: Desire – stir up desire to buy a product or service
A: Action – move the prospect into an interaction with your enterprise

DEVELOP A BRAND NAME

Business Name – your name is the key that unlocks your brand image in your consumer’s mind.
(See Video: https://www.youtube.com/watch?v=cxeosIPTq8c)

HOW TO NAME YOUR BUSINESS

- A lot, comes to small – business success. The right name can make your company the talk
of the town. The wrong one can doom it to obscurity and failure.’
1. First, consider and listing expert help – coming up with a good business name can
be complicated. And naming firms have a lot of systems for creating new names.
2. Decide how you want your name to be communicated – the more your name
communicates about your business, the less it takes to explain. As a rule, strings of
numbers and initials are bad choice. Also be sure to avoid geographic or generic
names that limit your market area or offers.
a. Choose a name that appeals to the kind of customers you’re trying to attract
b. Choose a company or familiar name that triggers pleasant memories
c. Don’t pick a name that’s long or confusing and stay away from cute puns that
only you understand.
3. It’s time to get created – since almost of existing words has been trade mark.
Consider “coining a name”. Coined names can be more meaningful than existing
words. But made up words aren’t the right solutions for everyone. Another solution is
to use a new form of spelling of existing words. To make your final decision, ask
yourself which name:
a. Best fit your objectives
b. Best describes your company past

LOGO
- Your logo is the brand mark or symbol that serves as the face of your brand
- It is a graphic mark, emblem, symbol or stylized name used to identify a company,
organization, product, or brand.
TAGLINE
- Your tagline is the remarkable phrase that provides consumers with a quick indication of
your product, brand, and market position

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 - It is a phrase that accompanies your brand name to quickly translate your business’s
positioning and brand identity into a single line that means something to consumers.
- It is meant to provide consumers with an indication of your brand and its market position in
just a few memorable words.

Work Activity
Entrepreneurship
Name:________________________________ Section:________________ Date:_____________

Quarter 2 Weeks 1 – 2: The Marketing Mix: 7Ps of Marketing

Activity No.1: Flyer/Brochure Making: Promotion is an activity that support or provides active
encouragement for the furtherance of a cause, venture or aim.

1. Based from your product proposal create a flyer/brochure that would be use to promote your
product.
2. Make sure that the flyer/brochure should contain the necessary information about your
product.
3. Be guided with this rubric: Graphics – 25%; Content – 50%; Attractiveness – 25%

Activity No. 2: Tagline Creation: Tagline is a catchphrase or slogan, especially as used in

advertising.

1. Create your own business tagline.

2. In creating the tagline make sure that it should be aligned with the main product.
3. Make sure that your tagline should be short but meaningful.
4. Limit the words of your tagline to 5 – 7 words only.
5. Be guided with this rubric: Content – 40%; Relevance – 40%; Originality – 20%

Activity No. 3: Business Logo Creation: Logo is a symbol or other design adopted by an
organization to identify its products or business.

1. Create your own business logo that will identify your business/products in the market.
2. You may draw/layout in a computer your business logo depending upon the available
resources you have.
3. You may also make use of a colouring material to make your business logo more attractive.
4. Be guided with this rubric: Craftsmanship/Skill – 30%; Creativity/Originality – 40%; Design
– 30%

Note:

1. You may opt to choose to print your output or send in it via our messenger/gmail account:
doeliicachapero@gmail.com / christianinayabga0913@gmail.com
2. Compile all the activities in one file following the file name
(Surname_EntrepActivities_Section/Strand) (e.g. De la Cruz_EntrepActivities_St.John/GAS)
when you opt to choose sending your outputs via messenger/gmail account.
3. For those who will be printing out their outputs make use of an A4 bond paper/ staple it.
4. Deadline for these activities will be on November 6, 2020.
5. You may send your output on or before the given deadline.

Activity No.4: Don’t Stress Yourself!!! (Markings, 100 points)

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 1. Finish all tasks given on time.
2. Take a rest.
3. Enjoy learning.
4. Don’t forget to pray and ask for help/guidance to our Creator.

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