-Is a process that involves the
Developing the conceptualization and creation of new
Marketing Mix
Marketing Mix
Is the set of strategies that marketers use
to effectively determine the needs of their
target markets, and to sell products that
will respond to these needs
The Elements Of Marketing Mix
Products – are the tangible objects that a
company sells to customers
Price – set amount customers have to pay
Place – channel of distribution
Promotion – communication to increase
the target customer’s knowledge of the
product
PRODUCTS
-are the tangible objects that a
company sells to customers
Levels of Product
Core Product
-is the reason or the benefit that a customer
can get out of that product
Actual Product
-The tangible properties of the product; the
features and packaging
Augmented Product
-Add-ons aside from what is being offered.
Classification of Products
Consumer Goods
-Products/goods purchased by consumers for
their own use.
Example: food, haircut and clothes
Industrial Goods
-Products/goods that are purchased to be
used in the creation of new product.
Example: Metals, mineral
New Product Development
product.
Stages of product development
 Idea Generation - searches for and
surveys new ideas.
 Idea Screening - weighing possible
pros and cons
 Concept Development and
Screening - transitioning from idea to
concept
 Market and Business Planning -
planning on how to market
 Product Development - the creation
of the prototype
 Product Prototype - the output
created
 Test Marketing - product testing to a
group of customers (sample size) in
terms of marketability with a specific
location
 Commercialization - product
launching
 Soft Launch - product testing
to a group of customers
(sample size) in terms of
useability
 Full-Scale Launch - official
launching that includes the
4Ps of Marketing.
Product Line
-Is a group of similar products offered by the
same company
Example: Hair Care, Skin Care, Toilet
and Bath,
Product Life Cycle
Introduction - The product is
launched in the market
Growth-gains acceptance in the
market
Maturity - been a market player
and competition has also increased.
 Decline - profits and sales continue
to decrease.
 Sunset - Until supply lasts
 Harvest - discounts or
markdowns
 Concentrated - tie up or
focus to one segment
Marketing Strategies for Service
Firms
 Selecting and Training Employees
 Associating effective customer
service with employee motivation
 Delivering high-quality service
 Building a strong and loyal customer
base
Price
-set amount customers have to
pay
Pricing Approaches
In cost pricing
 Selling price- is computed using the
fixed and variable cost
 Fixed costs - expenses which firms
cannot do away regardless of
production
 Variable costs - direct expenses on
materials and labors
 Mark up- added amount that will
determine the profit.
 Sales Forecast - estimation of
quantity of goods that can be sold
 Demand Forecast - estimation of
the market demand of a good in the
future
 Break-even -point when revenue
equals the expenses
Perceived value pricing
-Selling price is set based on the customer's
perceived value
Competitive Pricing
-Selling price is set based on the competitors
price
Setting the Price for a Product
 Marketing Objectives-pricing
depends on the goals of the company.
 Research and development costs -
pricing depends on the expenses
incurred in research and development
of new product.
 Market structure - pricing depends on
the structure of the market.
 Monopoly- prices are set
primarily by the manufacturer
 Oligopoly-one seller may set
the price and all others will follow
 Elasticity of Demand - relationship
between consumer demand and the
changes in the price of goods
 Elastic demand-consumers
respond to a change in price.
 Inelastic demand-consumers do
not respond to a change in price.
 Perfectly elastic demand -
find favorable substitute to a product
 Laws-setting of price based on
regulations.
Pricing Schemes
In product bundle pricing
- individual products are put together to
create one whole bundle.
Main or Captive product
pricing
- main product is charge at lower price
but additional charge go with it.
Product line pricing
- price varies on the variations of
goods.
Market penetration pricing –
- initially setting a low price to attract
customers.
Market skimming  Limited line wholesalers - provide
- starts with higher price then an assortment of goods that are
gradually decreasing limited to a few specific product lines
but offer a broad selection
 Specialty line wholesalers - single
product line but offer extensive
Place service
-The channel of distribution with o Rack jobber- maintains the
displays and stock of goods
the use of marketing
 Brokers and agents- third party
intermediaries business transactions
o Brokers - facilitate the
Channel of distribution- is purchase of goods between
classified according to distribution intensity buyers and sellers
o Agents-act in behalf of the
 Intensive-needs many seller.

intermediaries
Retailing - selling of products directly to
 Selective-needs few the final consumer
intermediaries
 Exclusive-only one
Retailers- individuals engaged in
retailing
intermediaries
Types of Retailing
Marketing intermediaries
o Sari-Sari Stores
- an entity that links producers and
-small retail shops found in the
consumers
neighborhood

Manufacturers - makers of the product o Supermarkets

-there's high efficiency in providing
the product
Distributorship - selected by
manufacturers to buy goods for resale o Drugstores
-composed of pharmacies found in
Wholesaling-selling of products for malls or stand alone in convenient
business use location
Merchant wholesalers - buy o Department Stores
goods in bulk and resell them with a mark - large stores which offer a variety of
up products that are organized into
Full service wholesalers - departments.
provide wide range of services to their o Convenience Stores
customers such as recruitment, inventory - stores that carry a limited number of
and delivery of goods goods

 General merchandise wholesalers

o Hypermarkets
- offer wide variety of goods - a huge superstores that are bigger
and more spacious than supermarkets.
 o Non store retailing Consumer Schemes
-selling of goods in mediums outside -sales promotions intended for consumers
a physical store like e-commerce Example: Discounts, coupons, cash
rewards, gift certificates

PROMOTION Trade promotions

-sales promotions intended for wholesalers
Advertising -non personal form of and retailers.
communication and the most expressive of
promotion types. Public Relations
-communicating with the media and the
• Examples public for positive image
Television - most widely used
medium
Direct Marketing
Billboards-placed along highways
-communicates with consumers directly
Elements without the help of middlemen
Reach-percentage of exposed target
market Call to action
Frequency-number of times it reached to - gives marketers an effective way to
the target market evaluate the effectiveness
Impact-value of exposure
Example: Door to door, emails,
telemarketing, direct response tv, e-
Objectives commerce
 To inform
 To persuade
 To compare
 To remind
Execution
Lifestyle - the way you live
Slice of Life - day to day activities
Fantasy - exaggeration
Mood - a spur of the moment emotion
Musical - through music
Technical/Scientific Evidence - to
assert a product's superiority
Testimonial-feedbacking
Personal Selling
-face to face technique using the art of
persuasion through the sales person's
knowledge and skills

Sales Promotion
-activities which help increase sales for a
product or service