Marketing Mix - A product's packaging is DIFFERENT from its label
- the set of marketing tools that a business uses to sell products
or services to its target customers
- set of marketing tools that the firm uses to pursue its
marketing objectives in the target market
- is a foundation model for businesses, historically centered
around product, price, place, and promotion (also known as
the "4 Ps")
Identifying and arranging the elements of its marketing mix allows a
business to make profitable marketing decisions at every level. These
decisions help a business:
1. Develop its strengths and limit its weaknesses
2. Become more competitive and adaptable in its market
3. Improve profitable collaboration between departments and
partners
 IN ORDER TO appeal to its customers, organizations must align all the four
elements of the marketing mix (4Ps) effectively. All four elements must focus on
the target market. They should create value by satisfying the customer's needs
and wants.
Products
- The entity that satisfies a customer’s need and want
- What Is being sold
- Can be : Goods, Services, Events and Experiences, Persons,
Places and Properties, Organizations, Information, Idea
Components of physical products:
1. Packaging
- It serves to contain and protect, and, sometimes, identify
and promote the product.
- It protects the product en route to the consumer.
- It makes product storage and display more practical and
effective.
- It preserves the product for further customer use.
 When deciding on product packaging, the following
must be considered:
a. How much quantity of the product should be
contained in the package?
b. What physical attributes should the packaging
have to facilitate customer use?
c. What legal requirements must the package comply
with?
d. What is the most appropriate shape of the product
packaging?
2. Labeling
- a display of information about a product on its container,
packaging, or on the product itself
- Product labels play a vital role in a product's marketing
- they are expected to draw the consumers' attention and
hopefully persuade them to purchase the product. Labels
are, therefore, a product's "silent salesman."
 The following factors must be considered in deciding
on the labeling of a product:
a. Establish the image or personality of the product
based on the tastes and preferences of the target
market.
b. Determine the most important features of the
product to the target market.
c. Determine where the product will be sold and the
applicable regulatory requirements, if any.
d. Determine the placement of the product in
relation to other products, particularly
competitors.
 3. Product Development
The Rationale Behind Product Development
- Why do companies introduce new products?
Product development Rationale
a. To defend its market share
b. To position ahead of competition in a market segment
c. To establish a foothold in a future market
d. To take advantage of strengths in product distribution
The objective is to ensure that the strategies are implemented
successfully.
and one cardboard box for product packaging are used,
its material cost would be;
● Direct labor would include the wages of all workers
directly responsible for making the shirt
● The unit's direct overhead is the amount that was
spent in the manufacturing overhead (energy, water,
and other utility costs) for every shirt produced.
2. unit share of operating and other expenses - fixed costs -
expenses incurred by the organization that are not related to
the manufacture of the product. These include executive and
staff salaries, office rental, advertising and promotions,
professional fees, and other similar expenses

 break-even point - the lowest possible price the

company can set for its products
Pricing Strategies - a model or method used to establish the best price
for a product or service. It helps you choose prices to maximize profits
and shareholder value while considering consumer and market
demand
a. Markup pricing - pricing strategy that allows the seller a fixed
markup every time the product is sold

Price

With physical products, two types of cost are calculated:

1. unit variable cost - be how much it would cost to manufacture
one unit of the product. This includes the cost of direct
materials, direct labor, and direct overhead
● Direct materials used in the manufacture of a shirt may
include the fabric, thread, and buttons. For example, if
two meters of fabric, five meters of thread, six buttons,
b. Target return pricing - a pricing method that allows a product
manufacturer to recover a certain portion of his/her
investment every year
c. Odd pricing or Psychological pricing - a pricing method
premised on the theory that consumers will perceive products
with odd price endings as lower in price than they actually are
d. Loss leader pricing - a pricing strategy frequently utilized by
supermarkets
e. Price lining - a pricing strategy designed to simplify a
consumer's buying decision
f. Prestige pricing - a pricing strategy that disregards the unit cost
of a product or service
g. Marginal pricing - where a business organization prices its
product at a range below its unit cost but higher than Its unit
variable cost.
h. Predatory pricing - a pricing strategy is where the firm prices
its product lower than unit variable cost, initially resulting in
Key functions of intermediaries:
short-term losses
i. Going rate pricing - a pricing strategy where a company prices
its product at the same level as or very close to its competitors
prices.
j. Promotional pricing - a pricing strategy involving a temporary
reduction in the selling price of a product/service in order to
induce trial or to encourage repeat purchase.
When new products are introduced into the market, one of
these two pricing strategies can be used:
a. Price skimming - where the product's selling price is
way above its unit cost. This allows the company to
recover its research and development costs and
expenses
b. Penetration pricing- a pricing strategy where the
new product is priced only marginally above its unit
cost. The objective of this strategy is to capture a
large part of the market at an early stage by making
the product affordable to the greatest number of
people
Place
- How can a company deliver its products to its customers
effectively and efficiently?
- Intermediaries provide access and convenience for the
product's consumers
- a major consideration in deciding the type of distribution
channel or intermediary. Mass market or a fast-moving
consumer goods may require intensive distribution, while
products like expensive fragrances may necessitate only
selective, it not exclusive, distribution
a. Information collection and dissemination
b. Product storage and movement
c. Operational financing
d. Product promotion
e. Risk taking
Supply chain - However, product manufacturers have very little control
- network of all the individuals, organizations, resources, on how the product is priced, displayed, or promoted.
activities, and technology involved in the creation and sale of a
product. 3. Selective distribution
- The chain starts from the delivery of materials from the - positioned between exclusive and intensive distribution,
supplier to the manufacturer, to the eventual delivery of the type of product distribution involves the use of more than
finished product to its user. The supply chain segment involved one but not as many dealers as an intensive distribution
in the delivery of the product from the manufacturer to the - This allows adequate manufacturer control over retail
consumer is known as the distribution channel. prices, displays, and promotions
- Supply chain management: The objective is to optimize the - However, it permits selected product distributors some
supply chain that results in better product manufacturing and level of independence.
distribution. This also leads to overall cost reduction and higher
Wholesaling is the sale of goods to others to be resold. Wholesaling is
sales.
an important product distribution function. Without wholesalers,
Product distribution types product manufacturers would have to deliver goods directly to
1. Exclusive distribution retailers.
- is limited to a select number of dealers, usually one or a
Because wholesalers perform a valuable distribution function,
few.
manufacturers allow them a markup for the goods distributed.
- The objective of exclusive distribution is to have more
Wholesalers perform the following key functions:
control over how a particular brand is priced, displayed,
 Information collection and dissemination, Bulk-breaking, Product
and promoted. Products that are distributed exclusively
storage and transportation, Assortment-building, Financing, Risk-
usually enjoy higher markups and better brand equities.
taking
- The major disadvantage of this type of product
distribution is that brands are not very accessible to
Retailing is defined as the sale of goods/services to the final customer
customers. Customers need to travel long distances to
for her personal consumption. Typical examples of retailing
get to where the product is available.
establishments are drug stores, sari-sari stores, restaurants, movie
houses, convenience stores, and supermarkets.
2. Intensive distribution
- This product distribution type, used mostly by fast-moving
consumer goods and convenience goods, involves making
a product available in as many retail outlets as possible
- This type of product distribution gives consumers the
highest level of place utility and convenience
 - a very expensive method of product promotion where
product/service pricing is often negotiated
Promotion
- necessary in the marketing mix when products/services are
- activities or a series of activities that are intended to boost the
highly technical, fairly complex, durable, expensive, or not
sales of a product or service, usually short-term.
actively sought out by customers, especially when its
There are essentially two types of promotions: customers are institutional in nature.
1. Trade Promotions - The success of personal selling depends on company
- promotions are intended for such as retailers salespersons understanding
- The purpose of trade promotions is to encourage the - customer needs and their ability to build long lasting client
intermediaries to increase purchases, to stock a particular relationships.
product, to accelerate purchases or payments for purchases, or - Products and services most commonly promoted and sold
to extend preference toward a particular brand. through personal selling are institutional products such as
Some examples of trade promotions are 10+1 (if a retailer equipment, recurring supplies, motor vehicles, homes, financial
orders ten cases of a product, the manufacturer delivers giving services, and unsought goods such as life insurance and
retailers to carry a specific product brand, and contests among memorial plans.
participating retailers. Trade promotions push products to the
Public relations
retailer or trade outlet
- creating and maintaining goodwill of an organization's various
publics (customers, employees, investors, suppliers, etc.)
2. Consumer Promotions
through publicity and other nonpaid forms of communication.
- are intended for consumers
- looks after the public's perception of a company or its brand's
- The purpose of consumer promotions is to induce product trial,
reputation, with the end of influencing opinion and behavior. A
to encourage brand switching, or to reward consumer
lot of companies engage in public relations efforts
patronage
- Examples of consumer promotions include the distribution of
Publicity
product samples, consumer contests, sweepstakes, coupons,
- communication written and produced by public relations
and raffles. Consumer promotions "pull' consumers to brand
professionals intended to create a favorable public image for a
retailers or trade outlets to see, try, and/or purchase the
client. Publicity usually takes the form of text, audio and video
product
news releases about an individual or organization
- reaches a wider audience, making it more cost-effective and
may have a longer recall by the general public than
Personal Selling
advertisements. Because publicity is often published or
- occurs when an individual salesperson sells a product, service,
circulated by third party entities such as magazines and
or solution to a client.
 newspapers, it has a higher level of credibility as compared to medium to be used, the advertising appeal to create, and the
advertising. celebrity endorsers (if any) to be selected.

Marketing Model  Establishing advertising objectives - objectives-After the target

- illustrates how marketing companies communicate product market is determined, the company formulates the objectives of
information and other advertising messages to their customers the advertising campaign. If the purpose is to create awareness,
- In the context of advertising, the advertiser is the party that the desired level of awareness should be identified. Targets with
intends to send a commercial message to the consumer. high level of awareness require multiple advertising placements
with greater frequency of exposures.
Advertising - any paid and public presentation of products, services, or
ideas, by an identified sponsor through a medium
 Determining advertising message - The message is the most
The most common objectives of advertising are:
important component of the advertisement. It varies depending on
- to build awareness
the objective. Objectives can be to inform, to create awareness, to
- to inform
persuade, or to remind.
- to persuade
 Functional - attempts to provide a product brand as the
- to remind
solution to a current consumption problem experienced
Brand awareness - the extent to which consumers are familiar with by customers.
the distinctive qualities or image of a particular brand of goods or  Symbolic - attempts to associate brand ownership with
services an aspirational group. It addresses other abstract need
states that involve aspects not addressed by functional.
Achieving a high level of awareness provides the brand the following
 Experimental - attempts to promote brands using high
advantages:
sensory value. It satisfies customers' desire for products
a. Learning advantages which heavily influence the formation and
that provide sensory pleasure.
strength of associations that comprise the brand's image.
 Selecting media - After determining the content of the message,
b. Consideration advantages which increase the likelihood that the
the company now selects among available media vehicles (i.e.,
brand will be included in the consumer's "consideration set," or
television, radio, print, or web). Media vehicles vary in cost, with
the set of brands that receive serious consideration for purchase.
distinct advantages and disadvantages, and varying levels of reach.
c. Choice advantages which can affect choices among brands
included in the consideration set, despite the fact that there may
be no other associations to those brands.
 Managing and coordinating the marketing communication process
Advertising campaigns - With various media vehicles available, the company may utilize
 Identifying the target market - All marketing efforts always begin multiple vehicles (e.g., television and radio advertising, public
with the identification of the target market of the product/service. relations, and publicity) to deliver the message to its target
This is the preliminary step to identify the type of message, the market. These efforts must be coordinated to ensure unity of
 message. This is referred to as integrated marketing
communications (IMC).

Types of Media and Techniques Used in Advertising

 Traditional Media and Techniques

a. Radio
b. Print
c. Newspaper
d. Magazine
e. Television (TV)  Physical evidence
- Anything tangible related to a product or the physical
 Alternative Media and Techniques environment in which a service takes place. Physical evidence
a. Cinema may include product packaging, delivery receipts, signage, or
b. Billboard the layout of a physical store.
c. Websites - in marketing means to maintain evidence/proof that service or
d. Social Networking Sites purchase took place and proof or confirmation of the existence
e. Directory Advertising of the brand.
f. Product Placement - It can either be a receipt, or an invoice, or a brochure, for
g. E-mail Advertising product delivery confirmation while for brand validation, it can
h. Transit Advertising be the company’s website, brand logo, business cards, etc.
i. Online Ads
j. Direct Response Advertising  People
k. Point-of-Purchase, Signs, Posters & Leaflets - Employees, including those who interact directly with
customers (such as sales, customer service, or delivery people)
The 7Ps marketing model was originally devised by E. Jerome
as well as staff recruitment and training.
McCarthy and published in 1960 in his book Basic Marketing.
- this category includes how well employees perform their jobs,
how they appear to customers (for example, what their
uniforms look like), and how customers feel about their
experience
 Process
 - Anything within the organization that has an impact on how a
product or service is handled by employees and delivered to
consumers.
- Refers to the business process through which the service is
provided to the clients. It becomes necessary to keep a regular
check on the process so that any sort of mistake can be
avoided.
- Some examples are the order in which employees must
perform tasks, how many queries salespeople receive and
where they direct customers for help, or how performance is
tracked and measured. It also covers which parts of the process
are standardized and which have room for customization on a
per-customer basis.
Importance of Marketing Mix
a. Helps understand what your product or service can offer to your
customers.
b. Helps plan a successful product offering.
c. Helps with planning, developing and executing effective
marketing strategies.
d. Helps businesses make use of their strengths and avoid
unnecessary costs.