ENTREPRENEURSHI

PENT04

Course Online
Learning Delivery
Asynchronous and Self-Paced

Prepared by: RMGabatin

 4Ps of Marketing
▸ 4P refers to PRODUCT, PLACE, PRICE, and
PROMOTION, which are essential components of a
successful marketing mix.
▸ Originally proposed by E. Jerome McCarthy as a
framework for marketing decision-making.

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 PRODUCT
▸ Products are tangible objects that a company sells to
customers for their use or consumption.

▸ Services are intangibles that a company can sell to

consumers (repairs, expert consultation, legal advise,
etc.)

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 PRODUCT
▸ Product Line is a group of similar products offered by the same
company under the same brand.

▸ Products in a product line may differ in their sizes, variants, or

flavors (SKUs = stock keeping unit).

▸ They may also differ in specific types, but are all under a
general class. (body wash, bar soap, foaming hand soap = types
 cleaning soap = general class)
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 PRICE
▸ Price is the amount of money charged for a product or
service, or the sum of all the values that customers
exchange for the benefit of having or using the product
or service.

▸ Pricing strategy refers to the method which companies

or businesses use to arrive at their product’s price.

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 PRICE
▸ Two major pricing strategies:
▹ Value-based pricing
▹ Cost-based pricing

▸ Value-based pricing uses the buyer’s perceptions of value rather than the
seller’s cost.

▸ Cost-based pricing sets prices based on the costs for producing,

distributing, and selling the product plus a fair rate of return for effort
and risk.

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 PRICE
▸ Two major pricing strategies:
▹ Value-based pricing
▹ Cost-based pricing

▸ Value-based pricing uses the buyer’s perceptions of value rather than the
seller’s cost. [customer driven]

▸ Cost-based pricing sets prices based on the costs for producing,

distributing, and selling the product plus a fair rate of return for effort
and risk. [product driven]

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 PRICE
▸ Value-based Pricing vs. Cost-Based Pricing

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 PLACE
▸ Place refers to your distribution channels (direct or indirect channel). Meaning,
it allows your consumers to know where they can get your product.
▸ In direct channel, the manufacturer of the product directly distributes to the
consumers.
▸ In indirect channel, the manufacturer uses one or more intermediaries
(middleman) to distribute products.
▹ Intermediaries may be one of the following:
▹ Agents
▹ Wholesalers
▹ Retailers
▹ Distributors

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 PLACE
▸ Place also refers to the nature of your distribution
channels – physical or digital.
▹ Physical stores like kiosk, brick-and-mortar shops,
mall space, etc.
▹ Digital distribution like online shops, social media
sites, store websites, etc.

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 PROMOTION
▸ Promotion is how you communicate your product’s
promise or benefit to your consumer in order to entice
them to purchase your product.
▸ It is not just advertising.
▹ Reinforce consumer’s purchase decision.

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 PROMOTION
▸ Here are a few promotional strategies that you can use:
▹ Creating strong advertising or marketing campaign
to improve brand awareness
▹ Giving out free samples for consumers to try
▹ Developing strong personal relationship with
customers
▹ Offering timely discounts or coupons

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THANKS!
STAY
SANE and
HEALTHY. 13