Department of Education

National Capital Region

SCHOOLS DIVISION OFFICE
MARIKINA CITY

ENTREPRENEURSHIP
The Marketing Mix
First Quarter-Module 6

Writer: Richelle C. Requinala, MBA, LPT

Cover Illustrator/ Writer: Sheila Mae A. Malesido, MBA, LPT

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 This module was designed and written with you in mind. It is here to help you
develop knowledge, skills, and attitudes in the course of Entrepreneurship. The
scope of this module permits it to be used in many different learning situations.
The language used recognizes the diverse vocabulary level of students. The
lessons are arranged to follow the standard sequence of the course. But the
order in which you read them can be changed to correspond with the textbook
you are now using.

The module is divided into two lessons, namely:

Lesson 6 – The Marketing Mix
After going through this module, you are expected to:
1. Identify the 7 P’s of Marketing Mix
2. Determine the importance of marketing mix in the development of
marketing strategy
3. Define brand name
4. Apply 7 P’s of marketing mix and brand name in an entrepreneurial
venture

Write the word TRUE if the statement is correct or the word FALSE if the statement is incorrect.

_____________1. Marketing mix is a marketing tool designed to identify the target

market.
_____________2. Marketing mix refers to the presence of many competitors and
suppliers in the market.
_____________3. In manufacturing the product, the entrepreneur must remember
that the product must not be costly.
_____________4. There is a substantial difference when the seven Ps are adopted
instead of the four Ps.
_____________5. When the business adopts the price skimming approach at the
time a new product has been introduced, the price is usually
low.
_____________6. Prestige pricing is intended for consumers who belong to the
higher social status.
_____________7. A new product must be introduced in the market using
advertising as the promotional tool.
_____________8. In direct marketing, the sales force goes to offices and homes to
sell the product.

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 _____________9. The entrepreneur must focus mainly on the quality of the
packaging materials used.
_____________10. Providing trade or cash discounts to consumers is a
promotional tool used in public relations or publicity.

Lesson
6 The Marketing Mix

Determining the life cycle of your products guides you in gauging the
sustainability and leverage of your business. Thus, that does not end there, you must
design a particular marketing program or strategy that will deliver the value of your
product to the target consumers. In the parlance of entrepreneurship, this program
is technically called the marketing mix.

Identify the brand name of the following logos:

1. 2. 3.
_____________ ___________ __________

4. 5.
______________ ____________

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The Marketing Mix

The marketing mix simply refers to a mode, means, or tool used by the
entrepreneur to position the product in the target market segment to efficiently and
effectively deliver it to the consumers and to convince them about the benefits that
they will derive from buying the product. The marketing mix is also known as the
“Ps” in marketing. Originally, there were only 4Ps, but the model has been
continuously modified until there became 7Ps. The original 4Ps stand for product,
place, price, and promotion. Eventually, three elements have been added, namely,
people, packaging, and positioning, to comprise the 7Ps.

The marketing mix basically addresses the following questions:

1. How can the target consumers be influenced to buy product or service?

2. What marketing strategy must be adopted to convince the consumers that the
product or service being offered satisfies their needs?

Product Place

Customer-driven Price
Positioning
Strategy

Packaging People Promotion

Figure 6.1. The 7Ps in Marketing

PRODUCT

Product refers to the tangible good or intangible service offered by the

business to the target consumers. Entrepreneurs do not create products without any
existing need or want for them in the market. The products must satisfy the needs
of the consumers better than the other competing products. A product that cannot
meet the needs of the consumers will not stay long in the market.
For emphasis, the two basic entrepreneurial tenets relative to product are as
follows:

1. The product is only produced once there is existing need or want.

2. The product must satisfy the need or want better than competing products.

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 Information about consumers’ tastes, preferences, perceptions, and priorities
has significant contribution to the design of the product. This enables the
entrepreneur to satisfy the needs and wants of the consumers. Satisfied customers
mean satisfactory sales and oncome for the entrepreneur.

In order to improve the marketing performance of the primary product, big

businesses nowadays adopt the concept of product mix where they make different
products or services available to the consumers on top of the primary product. Some
experts in the field of marketing and entrepreneurship also called this product as
differentiation strategy.

Product will be priced as it reflects the quality.

Example:

A dress shop reflects the quality. The dress shop offers different styles
and variants that suits the budget and preferences of the customers. These
are some competitive advantage of the organization the shop offers:
• Monthly Theme Design
• Customize Dress
• Reversible Dress
• Convertible Dress
• Accessories

PRICE

The concept of pricing relative to the marketing mix can be viewed from two
opposing perspective, namely, the perspective of the entrepreneur who produces that
product and the opposing perspective of the consumers who ultimately buy the
product. Normally producers apply higher prices for the products to gain a higher
profit, while the consumers want lower prices for the products.

Though there are no rigid rules as to how prices are set, there are some variables
that highly influence the setting of prices of goods and services. These include the
following:

1. Availability of the competing products

When the supply of the competing products is high, the price of the product is
usually low. Producers tend to gradually pull down the prices when the supply is
high and adopt a reverse mechanism when the supply is low. As an entrepreneur
you must know then the level of supply and demand for the product.

2. Cost of making the product

In manufacturing the product, cost is involved. The term cost refers to the
amount spent by the manufacturer in view of the expected future benefits. The
manufacturing cost includes the direct materials, direct labor, and factory
overhead. Direct labor refers to the wages paid to the workers who are directly
involved in manufacturing the product. Factory overhead includes indirect
materials and labor and other expenses like the cost of light, water, fuel, pr
machinery maintenance. Direct materials pertain to the materials that form part
of the finished product.

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3. Type of product

Products are broadly classified into industrial products and consumer

products. Industrial products are used as a raw materials of other
manufacturing entities. On the other hand, consumer products are used and
consumed by individual consumers. These products may be further classified into
convenience product, shopping product, and highly-priced product.

4. Presence of substitute products

The presence of substitute product is a threat to the primary product.

Substitute products basically set the limit to the selling price of the primary
product. The consumer can easily switch and buy the substitute products with
lower prices especially when the primary product is not available.

5. Stages of the product in the market

The product usually undergoes the following stages:

1. Introductory
2. Growth stage
3. Maturity
4. Decline stage

6. Demographic profile of the target market

Since the final buyer are the consumers, their demographic profile influences the
process of setting the most appropriate prices of the goods or services.

Psychological pricing are as follows:

1. Promotional pricing
2. Add or even pricing
3. Prestige pricing

Example

The dress shop used the cost plus strategy in order to set the price of the
products.

The computation will be:

Purchase Cost + Operating Cost + Mark-up = Selling Cost

Mark up will be equivalent to 45% of the purchase cost and operating cost will
be 15%.

The dress shop also offers discounts to reward loyal customers. The dress shop
offers discount for:
• Seasonal Sales
• New Products
• Large Quantity Order

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 PLACE

Place in the marketing mix simply refers to the place where the target
consumers are. The entrepreneur must establish his/her business or product in the
most strategic palace or location. The term strategic place, however, is relative. The
basic entrepreneurial concept relative to place in the marketing mix is very simple
and straightforward, that is, put your business where your consumers are willing to
buy the product.

The nature and the type of the product significantly determine the most appropriate
place for the business. There are businesses and types of products that require
sufficient parking space for consumers. A spot in the corner of a street does not apply
to all business and products.

Example:

The dress shop is located at Robinsons Supermarket Tagapo, Sta. Rosa City. It is a good
location for a business since the place is highly visited. It has a lot of opportunities to
attract and gain prospective customers. The shop will be accessible enough to meet the
needs of the target market.
During the promotional period, the business will place a “kiosk” outside the mall to inform
prospective customers be informed about our promotional activities and to provide
convenience to prospective customers by bringing our products in a place where they can
be easily reached.

Website

As the proponents decided to market their products online, they created a web page where
they can post and sell their products. They can also use this to reach their prospected
customer and also to inform the customer about what is new with Prestige Dress
Collection.

PROMOTION

The term promotion refers to the mode of conveying the presence and
attributes of the product to the target consumers. It creates awareness of the product
in the minds of consumers and elicits their desire to buy it.

Promotion utilizes the most appropriate media to reach the consumers. These
include the following:

1. Advertising
2. Publicity
3. Personal selling
4. Sales promotion
5. Direct marketing

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Prestige dress shop collection uses different promotion techniques and strategies in
reaching the customer and raising their awareness.

Print Ads

• Flyers – a form of paper advertisement intended for wide distribution and

typically distributed in a public place. The shop will use flyers in order to reach
a wide number of customers. To inform the prospective customers about
different promotions and offers of the shop.
• Poster – piece of printed paper designed to be attached to a wall or vertical
surface. The shop will use poster as part of the advertising tools to catch the
attention and attract the prospective customers walking near the shop.
• Brochures – portable print ad that will be used by the shop to fully inform well
the prospective customers about the offered products, its features and to
illustrate/show it through pictures

Promotional Tools

• Coupon – the shop will be using coupon to retain the customers. Coupon can
only be used within the promo period. Only one coupon could be used per
transaction.
• Gift Cheques – the shop will give away gift cheques to reward the loyal
customers. The gift cheques will only be used within the promo period and only
within Prestige dress collection boutique.

Promos
• Regular Holidays – the store will offer 10% discount on dresses during regular
holidays such as Christmas, New Year, and Valentines.
• New Products – the shop will offer 10% off the price of new products that will
be launched or introduced.
• Large Quantity Order – The shop will be giving 15% discount from the total
amount purchased by customers that will buy large quantity of product.
• The shop will be giving the customer free accessory of their choice if they
purchase 500-peso worth of dress in a single receipt.

PEOPLE

The modified model of the marketing mix has added people as another element
that assist in product positioning. The term people refers to individual employees or
workers who are directly involved in the production, marketing, and sale of the
product or service. Hence, the entrepreneur must be sure to hire the right person for
the position. The term right simply means that the educational qualifications and
expertise of the person to occupy the position match the specifications and
requirements of the job.

The target market of the said business is located at __________ with the total
population of ___________ and its female population is ___________. The women
from adolescent to adulthood are the target market.

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* Provide a description of adolescent and adult demographic, psychographic and
behavioral factors.

PACKAGING

Packaging refers to the process putting the product in a package or container.

It includes the kind of material used for the wrapper or container and the label and
product information printed on the package.

POSITIONING

Positioning, as an additional element in the modified model of the marketing

mix, refers to the place occupied by the product in the minds of the consumers. It is
a marketing strategy that defines the target consumers.

Branding

Brand refers to the name, design, color, symbol, quality, features, or a combination
of these elements that make the product separate and distinct from similar products
of the competitors. Moreover, the brand carries the attributes, benefits, and even the
values of the product. It communicates to the consumers the relevant information
about the product. It provides the specific perspective of the product to the
consumers.

According to Dondi Gomez, Vice President and Head of Corporate Marketing, Jollibee
Foods Corporations, “Branding is the process of differentiating yourself from the
competition. The ability of any company to compete and deliver sustainable,
profitable growth largely depends on the power of its brands.”

Branding is very critical in the promotion of a product among consumers. In most

instances, they associate the features, attributes, benefits, or value of the product
with the brand.

Brand names influence the buying decision of the consumers. That is why the
entrepreneur must define a clear and effective branding strategy, so that the product
remains competitive in the market. The basic concept in effective and competitive
branding strategy is to “Build a strong brand.”

Now, what is the best brand name for a product?

The term “best” indicates that the brand name can easily attract the attention of the
target consumers, influence them, and lead them to buy the product.

Though there are no standard procedures in the formulation of the best brand name,
the following approaches may be of a great help:

1. Review carefully the attributes, benefits, and values of the product.

2. Evaluate the consumers in the target market
3. Analyze the proposed marketing strategies
4. List the possible brand names by considering the first three steps
5. Limit the brand name to one or two words

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 6. Check the Internet if the chosen brand name already exists

Products can be copied by competitors. A brand however cannot. In addition,

successful branding provides a competitive advantage to the firm that cannot be
easily matched by competitors. This is because successful brands penetrate not only
the consumer’s mind but also the consumer’s feelings, eliciting the positive attitude
of the consumers towards the brand.

A brand, therefore, can be any of the following:

• A proprietary name like Natori or Microsoft

• A nickname like McDo or Pacman
• A group of letters like “HBC” or “CDO”
• A group of numbers like “555” sardines or “501” jeans
• A group of letters and numbers like 7-UP or C2
• Color association like Kodak’s yellow, Milo’s green or Eng Bee Tin’s purple
“ube” color
• A symbol such as the golden arches of McDonald’s or the swoosh of Nike
• Unique shape of packaging like Toblerone’s triangle or the Tiger Balm hexagon
• A combination of the above

When these elements are combined effectively, they represent a powerful symbol to
the consumer.

This symbol represents both a rational and emotional relationship between a product
and the consumer. The relationship is formed not only by way of consumer
perception about a brand but also in the consumer perception of the brand’s
attitudes toward them. The brand consumer relationship is strengthened by the
continuous ability of a brand to satisfy consumer needs and motivate consumer
wants. It is equally important to consider what messages and actions are
communicated to consumers.

Criteria for Choosing a Brand Name

1. Distinctive – is the brand closely associated with another product?

• McDonald’s is known for fast food but would a McDonald’s Hotel (in
Europe) be okay?
• Betadine is closely associated with antiseptic external wound remedy,
but would a mouthwash succeed?

2. Word Association – does it have a pleasant meaning?

• Dumex, the milk product never took off because customers associated
it with another product, called Domex, a household cleanser.

3. Legal Requirements - can it be registered?

• Sharp

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Identify the 7 P’s of the following:

1. Staff ______________________________
2. Convenience Stores ______________________________
3. Discounts ______________________________
4. Managers ______________________________
5. Satisfaction Guaranteed ______________________________
6. Raffles ______________________________
7. Posters ______________________________
8. Pouch ______________________________
9. Seaport ______________________________
10. Shampoo ______________________________

Answer the following questions briefly. Write your answer on the spaces provided.

1. Discuss the concept of marketing mix

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. Enumerate and explain the most common tools used by a business venture
to promote its product or service to the target consumers.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
3. Discuss the importance of branding in the practice of entrepreneurship.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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Your output will be rated by using the scoring rubric below:

Areas of Unsatisfactory Needs Satisfactory Outstanding

Assessment Improvement
(2) (3) (4) (5)
Ideas and Content is Major points Major points Major points
Content incomplete or are addressed are stated are stated
not clear but not well clearly and
supported are well
supported

In a separate sheet of paper, make a

poster for the following,

1. Selling the egg for P 5,000.00/each using

the 7 P’s of marketing mix.
Sell Me
Price is already given.

2. Create a brand name for the said egg.

3. Explain you work at the back of your poster.

Your output will be rated by using the scoring rubric below:

Needs
Excellent Satisfactory
Category Improvement
(3) (2)
(1)
The intended message The intended message No clear message can
to be communicated to be communicated be identified on the
Message through the poster is through the poster is poster
clearly identifiable not clearly identifiable
The audience that was The audience that was There was no clearly
the intended target the intended target defined target audience
Target Audience market for this poster market for this poster for this poster
is easily recognized is not easily recognized

The poster shows The poster shows some The poster does not
Content concepts integrated to concepts integrated to show concepts
the lesson the lesson integrated to the lesson
The poster uses color, The poster makes The poster does not use
visual images and some use of color, color, visual images or
words to clearly visual images and words to clearly
Creativity communicate the words to clearly communicate the
poster’s intended communicate the poster’s intended
message. poster’s intended message.
message.
The poster is neat and The poster is lacking The poster is sloppy
Neatness clearly presented in overall neatness and and poorly presented
presentation

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Choose the best answer by writing the letter on the space provided before each
number.

________1. It refers to the tangible good or intangible service offered by the business
to the target consumers.
a. Marketing Mix c. Product
b. Price d. Place

________2. It refers to a mode, means, or tool used by the entrepreneur to position

the product in the target market segment to efficiently and effectively
deliver it to the consumers and to convince them about the benefits that
they will derive from buying the product
a. Marketing Mix c. Product
b. Price d. Place

_________3. It refers to the mode of conveying the presence and attributes of the
product to the target consumers

a. Price c. Place
b. Promotion d. People

_________4. It refers to individual employees or workers who are directly involved in

the production, marketing, and sale of the product or service

a. Price c. Place
b. Promotion d. People

__________5. It refers to the process putting the product in a package or container.

a. Packaging b. Positioning c. Place d. People

__________6. It refers to the place occupied by the product in the minds of the
consumers

a. Packaging b. Positioning c. Place d. People

__________7. It refers to the name, design, color, symbol, quality, features, or a

combination of these elements that make the product separate and
distinct from similar products of the competitors

a. Brand b. Branding c. Brand Name d. none of these

__________8. It influences the buying decision of the consumers.

a. Brand b. Branding c. Brand Name d. none of these

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__________9. A criteria for choosing a brand name wherein the brand is closely
associated with another product.

a. Distinctive c. Legal Requirements

b. Word Association d. none of these

__________10. A criteria for choosing a brand name in which it has a pleasant

meaning.

a. Distinctive c. Legal Requirements

b. Word Association d. none of these

Offline Activity

Group Activity

1. Make a 7 P’s and create a brand name on the proposed entrepreneurial

venture.
2. Let your subject teacher approve your concepts on 7 P’s and the brand name.

Book
Aduana, Nick L. Entrepreneurship in Philippine Setting for Senior High School, 2017,
C & E Publishing Inc., Quezon City

Baltazar, William B., et. al. In Depth: A Guide to Successful Business Planning,
2017, Unlimited Books Library Services & Publishing Inc., Manila

Go, Josiah. Fundamentals of Marketing in the Philippine Setting, 2010, Josiah and
Carolina Go Foundation, Inc.

Online

https://www.infoentrepreneurs.org/en/guides/develop-new-products-and-service

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 Development Team of the Module

Writer: Sheila Mae A. Malesido MBA, LPT (SEHS)

Richelle C. Requinala MBA, LPT (CIS)
Internal Reviewer: Emily G. Santos ( Public Schools District Supervisor)
External Reviewer: Kervin Rey G. Torente, Ateneo De Manila University
Cover Illustrator/ Layout Artist: Sheila Mae A. Malesido MBA, LPT (SEHS)

Management Team:
Sheryll T. Gayola
Assistant Schools Division Superintendent
OIC, Office of the Schools Division Superintendent

Elisa O. Cerveza
Chief, Curriculum Implementation Division
OIC, Office of the Assistant Schools Division Superintendent

Emily G. Santos
Public Schools District Supervisor

Ivy Coney A. Gamatero

EPS– Learning Resource Management and Development System

For inquiries or feedback, please write or call:

Schools Division Office- Marikina City

Email Address: sdo.marikina@deped.gov.ph

191 Shoe Ave., Sta. Elena, Marikina City, 1800, Philippines

Telefax: (02) 682-2472 / 682-3989