THE MARKETING MIX

(7P’s)
Mr. John R. Manawis
 LEARNING OBJECTIVES
3

OVERVIEW

Agenda
4

MARKETING MIX
5
 LEARNING OBJECTIVES
1. Describe the Concept of Marketing Mix;

2. Identify the Seven 7P’s in the Marketing Mix;

3. Appreciate the importance of Marketing Mix

and Branding; and

4. Developed a Brand Name.

2023 MARKETING MIX (7P’s) 3

 MARKETING MIX (7P’s)
• Designing a Marketing Program or strategy that will send the value of your
product to the target customers.
• It is a business mechanism to effectively market products.
• Marketing Mix is a set of controllable and connected variable that a company
gathers to satisfy a customer better than its competitor.

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PRODUCT
 PRODUCT
• Marketing Strategy starts with the product.
• This is important part of planning in terms of
distribution system or price setting.
PRODUCT
- good or services that is produced to meet the consumers’ wants,
tastes and preferences.

2 Types of Goods 2 Types of Product

1. Business Goods 1. Consumer Service

2. Consumer Goods 2. Professional Service

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 2 Types of Goods
Consumer Goods
The demand for consumer goods is a 'direct demand’.
The number of buyers is great.
The buyers are found scattered in different parts of the
country / world.
Each purchase will generally be of small value.
Buying is much influenced by emotions.
After-sale service is important in the case of consumer
durables.
There are a number of middlemen in the market.
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Business Goods
The demand for business goods is a 'derived demand'. It
is derived from the demand for consumer goods, which
are made using the business goods.
Business goods have only limited number of buyers.
The buyers are found to be concentrating in certain
regions only.
Each purchase involves a very high amount (in money
terms).
Buying cannot be influenced by emotions.
After-sale service is of paramount importance in the case
of all business goods.
The manufacturers of industrial goods supply directly to
their customers.
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 2 Types of Goods
A buyer of consumer goods may not have thorough A buyer of industrial goods must have complete
knowledge of the goods he buys and uses. knowledge of the goods he buys and uses.

The reputation of the seller or manufacturer may not The reputation of the manufacturer is always important
always be given importance in buying consumer goods. in buying industrial goods.

Inducements to the buyers in the form of cash discounts, Such inducements may not be common in the marketing
free gifts, etc. are made always by those marketing of industrial goods.
consumer goods.

The market for consumer goods is affected by fashion The market for industrial goods is affected by
and style changes. technological changes.

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 2 Types of Product
A. CONSUMER SERVICES B. PROFESSIONAL SERVICES

• LAWN CARE • ENGINEERING

• HAIR STYLING • ACCOUNTING
• CONSULTANCY

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PLACE
 PLACE
• It is the location where the
buyer and seller exchange
goods or services.
• The “distribution channel”

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 The product may be perfect. But, what if:

1 Customer are not near a retailer that is selling the product?

2 A competing product is stocked by a much wider range of outlets?

A competitor is winning because it has a team of trained distributors or sales agents

3
who are out there meeting customers and closing the sale?

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Stages of Distribution Channel
1. Producer>Wholesaler>Retailer>Consumer

2. Producer > Retailer>Consumer

3. Producer>Consumer

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 CHANNEL 1
PRODUCER WHOLESALER RETAILER CONSUMER

• They combine • Typically buys and • It is a person or a • A person who

labor and capital to stores several business which sells purchase or avail
create goods or producers' goods good to public in goods or services.
services. and then breaks small quantities.
into bulk deliveries These are for quick
to supply retailers consumption.
with smaller
quantities.

• It contains two stages between the PRODUCER and the CONSUMER. The Wholesaler and Retailer.

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 CHANNEL 2
PRODUCER RETAILER CONSUMER

• They combine • It is a person or a • A person who

labor and capital business which purchase or avail
to create goods sells good to goods or services.
or services. public in small
quantities. These
are for quick
consumption.
• Also known as
the “middleman”

• It contains an intermediary. It is the retailer. A company that buys products from a manufacturer or wholesaler and sells them to end
users or customers.

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 CHANNEL 3
PRODUCER
• They combine labor and capital
to create goods or services.

CONSUMER
• A person who purchase or avail
goods or services.

• Also known as the “Direct Marketing Channel. ” Manufacturer directly sells to the customers.

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PRICE
 PRICE
• The amount or value that a
customer gives up to enjoy
the benefits of having or
using a product or service.

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Price is determined by:
2. A SELLER IS WILLING TO ACCEPT

1. A BUYER IS WILLING TO PAY

3. THE COMPETITION IS
ALLOWING TO BE CHARGED.
Elements in Price Setting
MARK UPS

COSTS

MARGINS
 Costs
Cost of Labor, Equipment, and materials used for Markup 100% Cost
production. Product Markup cost Final Cost
₱ 200.00/ Unit ₱200.00 ₱400.00

Markup
The amount added to the cost price of goods to
cover the overhead and profit.
Overhead-Cost of running a business that are
not directly related to producing a good or
service.
Fixed Variable Semi-Variable
Rent Transport Cost Utilities

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 Profit Margin
oThe revenue earned after paying the cost of goods sold (COGS).
oCommon measure of a degree on how a company makes money.
oExpressed as percentage.
30.00
------------------------- X 100.00
Production Cost Sales Revenue Margin (30 %) 100.00
₱70.00 ₱ 100.00 ₱ 30.00

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 Pricing Strategies
Competitors
oAn entrepreneur examines the price offered by the competitor and compares the quality or
differentiating factors of his or her product versus the competitor.

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 PRICING STRATEGIES
1. Penetration Pricing

oThe price of products and services were

artificially low in order to gain market share.

o If achieved, the price is increased.

2016
o A market strategy used by business to
attract customers to a new product by
initially setting a low price.

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 PRICING STRATEGIES
2. SKIMMING PRICING

o The price of products and services has a high

price on the onset. Then, there will be changes in
price. Lowering it to attract more consumers.
High Price attracts new competitors in the
market, and the price inevitably falls due to
increased supply.

o The main goal is to maximize the profit potential

of a newly launched product’s novelty.

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 PRICING STRATEGIES
3. Competition Pricing

oA pricing method in which a seller uses

prices of competing products as a
benchmark instead of considering own costs
or the customer demand.
oCommonly used by businesses with similar
products while the attributes remain similar.

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 PRICING STRATEGIES
4. Product Line Pricing

oReviewing and Setting prices for multiple products that a company offers in coordination
with another.
oProduct line pricing strategies aim to maximize the sales of different products by creating
more complementary, rather than competitive products.

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 LOW-END
MID-RANGE
HIGH-END
 Galaxy A (LOW END)
Galaxy A Price Range (6K-24K)

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 GALAXY S (30K-70K) MID RANGE
Fastest Chipset and Best Camera

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 GALAXY Z (70K-100K) HIGH-END
FLIP SIDE

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 1. COST PLUS PRICING 2. COMPETITIVE PRICING
oMark-up pricing oOffering prices similar to your
o50% markup competitors
oExample: oAlso known as, “Benchmark Pricing”
Cost (Pastillas) Markup (50%) Cost/ Box
₱100.00 ₱50.00 ₱150.00

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 3. BUNDLING
oOffering of one or two products at a reduced price.
oMost important rule: do not price your product or service below its cost.

Coffee Coffee + Donut Donut (₱50.00/pc)

₱50.00 ₱80.00 ₱50.00/pc

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PROMOTION
 PROMOTION
oAn element in marketing mix which enables the entrepreneur to inform potential customers
about the products availability,

oAlso, to educate the consumers about the product.

oAs an entrepreneur you have to create awareness about the product or service by
establishing an effective communication program.

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Objectives of Promotion
3. ENCOURAGE CUSTOMERS TO TAKE
ACTION AT SPECIFIC TIMES. (TRY OUT
THE PRODUCT OR SERVICE SAMPLE)

1. PROVIDE BASIC INFO ABOUT

THE PRODUCT/SERVICE

2. PERSUADE YOUR TARGET

CUSTOMERS OF THE BENEFITS
OF YOUR PRODUCT OR SERVICE
PROMOTIONAL MIX
ADVERTISING PR (Public Relations) Personal Selling SALES Direct Marketing
PROMOTIONS
1. Radio The article that Personal selling Sales Promotion Directly presenting
Technique:
2. Television features your occurs when an the information
3. Print company is not paid individual • Free Gifts about your
4. Electronic for. salesperson sells a • Free Samples company’s product,
5. Word-of- product, service or • Free Trial or service to your
• Customer Contests
Mouth PR is not paid. solution to a client. • Special Pricing target customers.
6. Generic Advertising is paid.
Five Stage Personal Forms of Direct Marketing
• Brochure
Selling Process: • Catalogs
• Fliers
• Newsletters
• Prospecting • Post cards
• Making first contact • Coupons
• Email
• The sales call
• Phone calls
• Objection handling • Text messages
• Closing the sale
PEOPLE
 PEOPLE
The team, and staff that makes it
happen for you, the audience, and the
advertisers in marketing.

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PEOPLE
Product If not handle properly
with the right people
Product will
not be sold.

People They judge the quality of the product/ service largely on

people they interact with.

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

• Thriving businesses emphasize customer relationship management (CRM) that
pertains to a business philosophy and a set of strategies, programs, and systems
that focuses on identifying and building customer loyalty, especially with the most
valued customers.

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PEOPLE
Frontliners Their job involves directly dealing with the
customers.
(Staff, personnel)

LAWYERS,
AUDITORS,
PROFESSIONAL

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PACKAGING
 PACKAGING
• A silent hero in the marketing
world. It refers to the outside
appearance of the product and
how it is presented to the
customers.
• It must be cost effective.

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Five Basic Functions of Packaging
Protection Containment Information Utility of Use Promotion
A. Natural Merging of unit Conveys important The convenience • Use of Attractive
deterioration loads for shipping. information to the packaging has been Colors
B. Physical consumers. devised for foods, • Logos
• Symbols
protection: household
• Captions
C. Safety Product Features: chemicals, drugs,
D. Waste • General Features adhesives, paints, (To promote
reduction • Ingredients cosmetics, paper customer purchase
• Net weight goods and a host of decision)
• Name and other products.
Address of
Manufacturers
• Maximum Retail
Price (MRP)
 Unit Loads
Configuration of materials
that can be moved as a
single unit by a material
handling equipment
(PALLET).

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Three Questions in Designing the Product

A. What is the product?

B. Who is Buying the product?
C. How are people buying the product?
POSITIONING
POSITIONING
• When a company presents a
product/ service in a way that is
different from other competitors.
• It is used by marketers to create an
image in the minds of the target
market

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Three Basic Concepts of Positioning
Functional Position
Deals with solving a problem,
providing benefits and getting a
favorable perception from
investors, stockholders and
consumers.
Symbolic Positions Experiential Positions
Deals with self-image Deals with providing sensory or
enhancement, ego cognitive stimulation.
identification, belongingness,
social meaningfulness and
affective fulfilment.
 STEPS IN POSITIONING PROCESS
STEP 1 STEP 2 STEP 3

• Confirm your • Identify your • Choose

Understanding Competitive Competitive
of Market advantage Advantage that
Dynamics define your
niche

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 References:
https://www.investopedia.com/terms/d/distribution-channel.asp

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Thank you !
John R. Manawis
johnmanawis@gmail.com