Learning Activity Sheet

Applied

G11
Regional Office No. VIII - Eastern Visayas
Department of Education
Schools Division Office of Biliran
Larrazabal, Naval, Biliran
SENIOR HIGH SCHOOL

Entrepreneurship
(Q3-Week 7)

Name: __________________________
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Grade & Section: _______________
Date: ___________________________
LESSON 1: LET THE MARKET KNOW YOU BETTER

LC: Describe the Marketing Mix (7Ps) in relation to the business

opportunity vis-à- vis: Price; Promotion; People;
CS_EP11/12ENTREP-0h-j-10)

VOCABULARY LIST:
Accessible- capable of being reached
Available- present or ready for immediate use
Adequate- sufficient for a specific need or
requirement
Acceptable- capable or worthy of being
accepted
Affordable- having a cost that is not too high

Direction: Answer the following questions:

Source: P and G in the Philippines

1.Are these brands familiar?
2.Are you using these brands
of products?
3.Are these available in the
market?
4. How do these products able to reach you?
5. Are these products affordable?
6. In what situations do companies of these
products offer promos?

Take time to Read Young Entrepreneur !

Some of the things you can focus on under each of
price, promotion, and people, include:
PRICE
How does your product compare when it comes to
the market price?
When was the last time you reviewed your pricing?
When was the last time you altered your price in-
line with inflation, or
market supply and demand?
Is your pricing model clear and easy to
communicate?
Do you know your profit margin on each product
you offer?
Do you provide any added-value to your offering?
Do you offer the most appropriate payment
methods for the customer?
Do you offer credit facilities?
PROMOTION
What marketing communications do you have?
Do they need updating?
Do they give the right messages?
How could you refine your sales process?
What PR activity are you doing?
Do you have a marketing budget? Should it
stay the same, or change
this year?
Do you network to promote your business?
PEOPLE
Do you have the right people to sell your
product / service?
Do you have the right amount of marketing
support?
Are the right people in your team, in the right
roles?
Do you need more, or less resources?
Could you outsource some of your work to
reduce commitment on
costs?
Do you have the right culture within the team?
Do you have a good recruitment, training and
appraisal system for
staff?

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 Price
Pricing depends on the business objectives
5. Penetration, survival, or liquidation
set by the enterprise. While price is a major
6. Scarcity pricing or market skimming
factor for the customer in buying a product, it s
7. Cost recovery
not the only factor such as in the case of buying
8. Subsidy pricing
premium products.
9. Marginal pricing
The enterprise should set the prices of its
The first three pricing strategies pertain to
products or services based on its business
the related dynamics of the different price
objectives such as the following:
ranges applied across different product
1. Profit maximization
volumes are bought or sold. For a better
2. Revenue maximization
appreciation. Let us take a look at Table 4.2
3. Market share maximization
4. Attainment of the desired prestige or quality
leadership
Table 4.2 Profit, Revenue, and Market Share Maximization
PRICE VOLUME TOTAL TOTAL TOTAL UNIT COST
REVENUES COSTS PROFITS

₱1O 100 ₱1000 ₱800 ₱200 ₱8.00

₱12 90 ₱1080 ₱750 ₱230 ₱8.33
₱14 75 ₱1050 ₱675 ₱375 ₱9.00
₱16 60 ₱960 ₱600 ₱360 ₱10.00
₱18 50 ₱900 ₱550 ₱350 ₱11.00
Assumes the following: Fixed Costs equal ₱300; Variable Costs equal ₱5 per unit
As mentioned earlier, prices could be set at a premium to project a quality image and to distance the
product from its inferior competitors. The idea is to attract customers who are willing to pay extra for the
quality difference.
At the other end, prices can be set very low to survive in a competitive market or to get rid of mounting
inventories and convert them into cash. The other objective of a low pricing strategy is to penetrate the
market fully and overtake the competition.
Products that are very scarce or rare would appeal to wealthier customers who wish to belong to an
exclusive club of owners.
Cost recovery pricing charges a price that allows the organization to merely recover its full costs. The
purpose is to reinvest the sales proceeds to produce additional products and reach out to more people.
Marginal pricing sets the price higher than the variable costs of a product but lower than the full costs in
order to increase overall profitability. This practice is done to utilize excess production capacity that would
otherwise be unused.
There are other pricing objectives which the enterprise may have. It may offer introductory or
promotional pricing to launch a new product. It may charge different prices in different geographical areas
to take care of additional logistics costs in farther locations or to accommodate the lower purchasing power
in poorer geographic areas. Discount pricing may be given to loyal and regular customers to maintain their
patronage.

PROMOTION
Promotion is the explicit communication strategy adopted by an enterprise to elicit the patronage,
loyalty, and support not only from its customers but also from its other significant stakeholders.
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 Promotion encompasses all the direct communication efforts of the enterprise, such as advertising, public
relation campaigns, promotional tours, product offerings, point-of-sale displays, websites, flyers, emails, letters,
telemarketing, and others. Indirectly, the enterprise communicates through the quality of its products and
attractiveness of its packaging.
Effective promotion depends on three critical factors: the credibility of the communicator; the message and the
medium of the message; and the receptiveness of the audience to all that is being communicated.
In developing a promotion campaign, the enterprise should start with the target audience in mind.
At the beginning of its operations, the enterprise may have a very limited market to cover. The narrower the
market coverage is, the more focused the promotion campaign should be.

PEOPLE
People are the ultimate marketing strategy. People sell and push the product. People search hard to find the
right market. People distribute, promote, price, and sell the products in the most attractive market places. People
aim to please the customers through continuing service and product enhancements long after the customers
have bought the product. People are the regular contact points between the enterprise and its market.
The marketing efforts of people are organized at four levels: (1) to create customer awareness; (2) to arouse
customer interest; (3) to educate customers as they evaluate their buying choices; and (4) to close the sale and
deliver the products.
To arouse the interest of customers, the enterprise can use several people or organizational modalities.
The first modality is to outsource the people from advertising agencies, events management outfits, call
centers, and telemarketers. The second is to build in house capabilities by hiring market researchers, brand
managers, salespeople, public relations officers, website writers, orchestrators, etc. The third is to collaborate or
enter into partnerships with principals, distributors, dealers, and industry associations.
Educating customers in their evaluation process requires the enterprise to know the customers’ decision
making process.
1. What and who are involved in the buying process?
2. Where are the customers in the buying process? Are they still canvassing and shopping around? Are they
currently focusing on a few candidates? Are they seriously evaluating the company’s product?
3. What are the next steps of the customers and how can the company facilitate their next steps? What else
do the customers need to know and what issues must be addressed by the marketer? The customer
evaluation process may follow something similar to Table 4.1

Table 4.1. Consumer Evaluation Process

INITIAL PROCESS MID PROCESS FINAL PROCESS

 Comparison of product  Customers who have tried  taste tests

features and probable results the products before  Physical demo
by:  Professional evaluator’s  Free trial period
- window shopping guidebook on competing  Money- back guarantee offer
- internet browsing products
-brochures collection and  Testimonials from credible
comparison endorsers
-asking friends and  How often others are seen
relatives actually using the product or
 Word of mouth feedback services
 Gut reaction
Finally, the sale must be closed and the products should be delivered to the customer. Closing the sale
demands that the product be available, adequate, acceptable, and affordable.

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 JUSTIFY ME

A. Write True if the statement is correct. B. Do the following tasks:

Otherwise write False and state your reason 1. Discuss the primary objective of the
briefly. marketing plan.
1. The marketing plan describes in detail how the 2. Identify the important factors described in
project will be finally the marketing plan and the
sold to the target customers. financial plan.
2. Much of the information contained in the marketing 3. Explain the significance of assumptions in
plan is the output the preparation of the
of research. projected financial statements.
3. The marketing plan contains the factors or 4. State the importance of the financial
variables of the marketing statement analysis
mix.
4. The marketing plan does not apply to service
business since it does
not have any product to sell.
5. The financial plan contains information about the
financing scheme
of the business.

COMPLETE ME!

Direction: Complete the crosswise puzzle by giving the right entrepreneurial terms described below.

ACROSS
1.It refers to the process of putting the product in a package or container.
2. It refers to the individual employees or workers who are directly involved in the production, marketing,
and sale of the product or service.
3. It refers to the place occupied by the product in the minds of the consumers.
4. It refers to the place where the consumers are expected and willing to buy the product.

DOWN
1. The mode of conveying information about the product to the target consumers.
2. It is the amount of money expected, required, or given in payment for something.
3. The output of the whole production process, or the tangible good or intangible service offered by the
business to the target customers.

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MULTIPLE CHOICE:
Direction: Choose the best answer.
1. The Seven P’s will fall under _____________ Plan.
a. Production b. Financial c. Organization d. Marketing
2. Positioning in the context of a marketing plan, has three overlapping objectives, except one?
a. Enterprise perspective c. Competitive perspective
b. Customers’ perspective d. Product perspective
3. The _______________ presents the total number of goods to be produced and the expected time to
produce them.
a. Production Process c. Production Schedule
b. Production Cost d. Sources Material
4. ________ can establish their positioning either by starting with their own product creations or with their
customers’ outcome expectations.
a. Enterprises b. Customers c. Competitors d. Products
5. _______one of the general type of products that are marketed by enterprise that offers completely new
performance benefits.
a. Differential products c. Copycat products
b. Breakthrough products d. Niche products
6. A business wishes to meet the needs and wants of customers better by delivering a higher quality
service. Which element of the marketing mix will the business focus on to achieve this?
a. Product b. Price c. Place d. Promotion
7. What does the overall marketing mix of a firm determine?
a. Marketing strategy b. Marketing objective c. Profit from marketing d. Marketing interest
8. Refers to what you are selling, including all of the features, advantages and benefits that your customers
can enjoy from buying your goods or services.
a. Product b. Promotion c. People d. Positioning
9. It is means that the price and payment terms are right.
a. Availability b. Adequate c. Affordable d. Acceptable
10. It is means that the enterprise has the goods or services on hand.
a. Availability b. Adequate c. Affordable d. Acceptable
3. Product
ANSWERS KEY: 2. Price
5. TRUE
4. FALSE, DOES APPLY 1. Promotion
3. TRUE DOWN
2. TRUE 4. Place
1. TRUE 3. Positioning
A. 2. People
Let’s explore & Apply- Justify Me 1. Packaging
ACROSS
improvement of the business. EVALUATE:COMPLETE ME
plan because its result can be interpreted and used for the LET’S
4. Financial statement analysis is incredibly significant in a business
to monetary concerns like salary.
contribute in making the financial statement. This serve as projection
3. Some major assumptions based on reliable data or information
statement analysis.
in equity, Projected statement of financial position, and Financial
Projected statement of cash flows, Projected statement of changes
Major assumptions, Projected statement of comprehensive income,
People, Packaging, and Positioning while Financial Plan includes
2. The marketing plan includes the Product, Place, Price, Promotion,
product to the target consumers.
1.The marketing plan details how the proposed business will sell its 6
B .