Lesson 4

MARKETING MIX AND

BRANDING
Objectives:
Recognize the importance of marketing mix in the
development of marketing strategy
1. Describe the Marketing Mix (7Ps) in relation to the
business opportunity vis-à-vis:
a. Product;
b. Place;
c. Price;
d. Promotion;
e. People;
f. Packaging; and
g. Positioning
2. Develop a brand name
THE MARKETING MIX –
FROM 4 P’S TO 7 P’S
Marketing Mix is a tool used by businesses
and Marketers to help determine a
product or brands offering. 
THE MARKETING MIX 4 P’S:
1. Product
– Refers to tangible good or intangible service
offered by the business to the target
consumers
For emphasis:
1. The product is only produced once there is
an existing need or want.
2. The product must satisfy the need or want
better than the competing products.
In order to improve the marketing
performance of the primary product, big
companies adopt the concept of PRODUCT
MIX.

- They make different products and service

available to the consumers on top of the
primary product.
Using of Product Mix
• Mercury Drug
– Formed and designed to sell complete line of
pharmaceutical products
– Now includes household merchandise, food,
toiletries, etc.

• National Bookstore
– Sells books, and also various schools and
office supplies
2. Place
– Refers to the place where the target
consumers are.
– The product should be available from where
your target consumer finds it easiest to
shop. This may be High Street, Mail Order or
the more current option via e-commerce or
an online shop.
The entrepreneur must establish his/her
business/product in the most Strategic Place
or location.
3. Price – Price is the amount of money that your
customers have to pay in exchange for your
product or service.
– The product should always be seen as
representing good value for money.
– This does not necessarily mean it should be the
cheapest available; “the customers are usually
happy to pay a little more for something that
works really well for them.”
Variables that influence the setting of prices
of goods and services:
a) Availability of the competing products
b) Cost of making the product
c) Type of product
d) Presence of substitute products
e) Stages of the product in the market
f) Demographic profile of the target
consumers
a. Availability of the competing products
– when the supply of the competing
products is high, the price of the product is
usually low.

Illustration 1: Supply and Demand

The Law of Supply and Demand
The law of supply and demand is a theory that
explains the interaction between the sellers of
a resource and the buyers for that resource.

The theory defines how the relationship

between the availability of a particular product
and the desire (or demand) for that product
has on its price.
Generally, low supply and high demand
increase price and vice versa.

supply demand price

low high high

high low low

Consumers
– are all the economic units that are
potentially willing to buy a certain good or
service. For most goods and services, we can
say that demand will increase as the price falls
and vice versa. This actually seems pretty
obvious: Just think about how many people
would buy a Ferrari if they were not that
expensive.
Producers
– the ones that are potentially willing to
produce and sell a certain good or service. For
most goods and services, this implies that
supply will decrease as the price falls and vice
versa.
(If you were to sell ice cream, you would
probably try and sell as much as you could
if prices were high, because you could
make a good profit. However, if prices
were to fall (maybe even beyond your
production cost) it would not be profitable
to sell ice cream anymore and you would
produce less).
Consumers are willing to buy more (i.e. a higher
quantity) of a good or service if the price falls. So for
every price there is a quantity demanded, which will
be higher the lower the price is. Now if we plot all
these quantity-price combinations we get a graph
called the demand curve (D).
Now we can do the same thing for the producers.
But since they are willing to produce less (i.e. a
lower quantity) as the price falls, the graph we
receive is somewhat similar to a mirror image of the
demand curve. We call this the supply curve (S).
 
The point where both curves (D and S) intersect is
called the market equilibrium (E*). At this point
(and price) the consumers are willing to buy exactly
as much of a good or service as the producers are
willing to sell, and the market clears. This is the best
possible situation for all actors, thus they will always
tend to get to this outcome.
This means the two curves will keep shifting until
the equilibrium quantity and price are reached. 
 Price

Expensive
SURPLUS

MARKET EQUILIBRIUM

SHORTAGE
Cheap /
Mura
Quantity
Few / konti Many
b) Cost of making the product
Cost – the amount spent by the manufacturer
in view of the expected future benefits.

– Cost includes DIRECT MATERIALS, DIRECT

LABOR, and FACTORY OVERHEAD.
Direct Labor – wages paid to the workers
involved in manufacturing the product.

Direct Materials – materials that form part of

the finished product.

Factory Overhead – indirect materials, labor

and other expenses like cost of water, light,
fuel, or machinery maintenance.
c) Type of product
Classified into industrial and consumer
products

Industrial Products – used as raw material or

other manufacturing entities.

Consumer Products – used and consumed by

individual consumers.
d) Presence of substitute products
A threat to the primary product. Consumers
can easily switch and buy substitute products
with lower prices especially if the primary
product is not available.
e) Stages of the product in the market

1st – Introductory Stage

2nd – Growth Stage
3rd – Maturity Stage
4th – Decline Stage
1st – Introductory Stage
new product is priced high, but is gradually
reduced as competitors increase
2nd – Growth Stage and 3rd – Maturity Stage
price is equal to cost plus desired profit
margin (salaries, travel expense, tax, licenses
etc.)
4th – Decline Stage
product experience decrease and negative
growth in sales. Lowers profits and eventually
losses the business.
f) Demographic profile of the target
consumers
The demographic profile of the consumers
highly influence the process of setting the
most appropriate prices of goods and services.
CATEGORIES OF PSYCHOLOGICAL PRICING

1. Promotional Pricing
– Lower prices in a limited temporary period
like midnight sale, Christmas sale, or
anniversary sale
2. Odd or Even Pricing
– Where products price ends in odd like 5 like
₱99.95, ₱199.95,and ₱499.95 is cheaper than
₱100, ₱200 and ₱500.
3. Prestige Pricing
– Products are sold at a high price to create a
high or superior image.
4. Promotion – mode of conveying the
presence and attributes of the product to the
target consumers.

Promotional Media:
a. Advertising
b. Publicity
c. Personal Selling
d. Sales Promotion
e. Direct Marketing
a. Advertising (paid)
– most common medium of promoting a
product and services.

Following forms:
1. Television or radio commercials
₱

2. Print Advertisement: Billboard, magazines,

newspapers
3. Online advertisement
4. Packaging ads
Packaging ads
Advertisement should be able to
a. Attract the attention of consumers
b. Communicate the message of the product
c. Elicit the feeling or desire to buy the product
d. Identify the benefits of the product
e. Convey the message using plain and simple
language
f. Appeal to consumers understanding by being
meaningful and believable
g. Distinguish the product from other similar
product
b. Publicity
Members of the media are usually informed
through a formal statement or press release
about a particular event where the product or
services will be presented.
c. Personal Selling
Involves a salesperson who has personal and
direct contact with the prospective consumer.
d. Sales Promotion
Aims to influence the target consumer to buy
the products or avail of the service now and
not tomorrow.
Involves getting incentives so they will acquire
the products or services.
– coupons, discounts, cash rewards,
and gift certificates.
Discounts – allows consumers to buy or avail
at a lower price than the regular price.

Coupons – they have to buy more products to

accumulate more coupons to acquire the
product being promoted.
Cash rewards – encourage consumers of the
cash reward program when they issue cards
(Jollibee plus card/ advantage card), record
every point accumulated for every purchase.

Gift certificates – incentives to customers who

have completed the required accumulated
amount of purchases. However, the recipients
can only use the certificate in the same store.
e. Direct Marketing
Through internet. Entrepreneur starts building
a consumer database, performs a one-on-one
approach in building consumer relationships,
and sells the product online.
In the late 70’s it was widely acknowledged by
Marketers that the Marketing Mix should be
updated. This led to the creation of the
Extended Marketing Mix in 1981 by Booms &
Bitner which added 3 new elements to the 4 Ps
Principle. This now allowed the extended
Marketing Mix to include products that are
services and not just physical things.
POSITIONI PACKAGI
NG NG
The extended 7 Ps:

5. People – individual employees or worker

who are directly involved in the production,
marketing, and sale of the product and
services.
6. Packaging – process of putting the product
in a package or container. Includes materials
used for wrapper or container, and label and
product information printed on the package.
7. Positioning – refers to the place occupied
by the products in the mind of the consumers.

For example, in relation to the product image,

there must be a quality product that satisfies
the needs or wants of consumers.
THE CONCEPT OF NEEDS,
WANTS, AND BRANDING
MASLOW’S HIERARCHY OF NEEDS

SELF-ACTUALIZATION (Satisfied when finally

realized the ultimate dream)

SELF-ESTEEM (respect, recognition, and honor

by community)

SOCIAL (need for friends, acceptance, and

love or belonging)

SAFETY (Physical safety, economic safety)

PHYSIOLOGICAL (Basic needs)

BRANDING
Refers to the name, design, color, symbol,
quality, features, or combination of these
elements that make the product separate
and distinct from similar product of the
competitors
The foundation of your brand is you LOGO.
Your website, packaging, and promotional
materials – all of which should integrate your
logo – communicate your brand.

Consistent, strategic branding leads to a strong

brand. Added value brought more to your
company’s goods and services that allows you
to charge more for your brand than what
identical, unbranded products command.
Red actually increases your heart rate by activating the
pituitary gland. Food companies use red in store signage
because it encourages appetite and enhances metabolism.
A recent study found that changing the color of the price
from black to red in an advertisement makes customers
think they are getting a bargain.
BRANDING AND TAGLINE
TAGLINE
– A short, memorable phrase that is used
throughout your marketing. It should convey the
main sentiment or feeling that you want people to
associate with your brand.

Example: “Langhap Sarap” – Jollibee

“Just Do It” – Nike
“We Find Ways” – BDO
The following approaches may be of great
help in branding:
• Review carefully the attributes, benefits, and
values of the product
• Evaluate the consumers in the target market
• Analyze the proposed marketing strategies
• List the possible brand names by considering
the first three step
• Limit the brand name to one or two words
• Check the internet if the chosen brand name
already exist
2 BRANDING STRATEGY
1. UMBRELLA APPROACH
Umbrella brand approach of branding names,
all product of the business carry the same
brand name
2. HOUSE BRAND APPROACH
In the house brand approach, every product of the
same business has a separate brand name that
distinguishes from the rest of the company’s
product
BRANDING EXTENSION
STRATEGY
3. PRODUCT EXTENSION APPROACH
In the PRODUCT EXTENSION APPROACH, a new
product carries the brand name in a new
category. The new or added product appears
to be totally different from the old or existing
product liner
4. LINE EXTENSION APPROACH
In the line EXTENSION APPRAOCH the existing
product has been modified or altered resulting
in a new product or more product without
eliminating the original product
Defining your Brand:
1. Get a great Logo
2. Write down your brand messaging
3. Integrate your brand
4. Create a “voice” for your company that
reflects your brand.
5. Develop a tagline
6. Design templates and create brand
standards for your marketing materials
7. Be true to your brand
8. Be consistent
What do you consider when selling a
product?
Group Activity:

1.Watch the video (commercial sample)

2. Create a new name for the beauty
soap.
3. Create a logo and slogan for that
product based on the commercial.
4. Determine the 7 marketing mix that
can be used in that product
 Criteria: 4 3 2 1
25% 20% 15% 10%
1. Very effectively Effectively some ideas clear, unclear, significant
Communication communicated, communicated. some difficulties difficulties
appropriate Appropriate

2. Shows complete Shows nearly Shows some Shows limited or no

Understanding understanding of complete understanding of understanding and
the lesson and understanding of the the lesson and application on the
application on the lesson and application application on performance
presentation. on the presentation. the presentation.

3. Presentation Superior some craftsmanship details were absent/ missing

Quality craftsmanship and and attention to detail overlooked and
attention to detail is evident; proper presentation
is evident; proper materials used for lacks quality ;
materials used for entire presentation proper materials
entire presentation were used on
half of the
presentation

4. Visual Clarity Presentation has an The presentation has a the presentation the presentation needs
and Appeal excellent design nice design and is needs significant
and organized. It is organized. It is neat improvement in improvement in design,
neat and easy to and easy to design, organization and
understand understand organization and neatness
neatness
Performance Task:
A client of McCann-Erickson, an advertising company is
asking your creative team to improve their business. As
creative team, your task is to create a brand name, logo,
symbol, slogan and jingle.

Choose an interesting product or services for your project.

Examples are the following:
a. Local Carinderia (lugaw, kinalas, pansit, etc)
b. Cellular phone Store
c. Internet shop
d. Water refilling station
e. Bakery (pandesal)
 4 3 2 1
Criteria 20% 15% 10%
25%
1. Catchiness The commercial was  The commercial was  The commercial was The commercial was
an attention getter able to catch some acceptable with its not catchy or
because it was able attention but cannot catchiness but not interesting at all
to attract the maintain the interest interesting enough
interest of viewers of viewers
2. Values The whole Had positive values The values was not The commercial has
commercial was but was not clear in appropriate in the no meaning and
able to teach the commercial commercial values at all
positive values

3. Creativity and New and innovative  student adopts student adopts others' creative but no
approach to the topic;others' ideas to ideas to create own originality shown
Originality student has created create own design; design; very little
own design and some originality originality shown
product shown.
4. Humor The humor was  Humor was place at  Humor was not No humor at all or the
added on the right the right time and at appropriate in the humor was not
time and at the right the right place but commercial effective on the
place in the not that effective commercial
commercial.
QUIZ ½ lengthwise

Write these words on the right

side of your paper
Write these words on the right side of your paper

Consumer Product Direct Material Substitute Product

Product Industrial Material Product Mix

Factory Overhead Promotional Pricing Odd or Even Pricing

Prestige Pricing Discounts Coupons

Cash rewards Gift certificates Advertising

Publicity Personal Selling Branding

Marketing Mix People Positioning

1. These are the materials that form part of the finished product.
2. This is used and consumed by individual consumers.
3. Make different products and service available to the consumers
on top of the primary product.
4. The use of raw material or other manufacturing entities to create
a product.
5. This refers to the goods or services offered by the business to the
target consumers.
6. This is a threat to the primary product.
7. indirect materials, labor and other expenses like cost of water,
light, fuel, or machinery maintenance.
8. Customers need to buy more products to accumulate more of this thing to
acquire the product being promoted.
9. They lower prices in a limited temporary period.
10. This allows consumers to buy or avail a product or services at a lower
price.

11. Where products price ends in 5 like ₱99.95 or ₱199.95.

12. It encourage consumers of the cash reward program when they issue cards
so it can record every point accumulated for every purchase.

13. The products are sold at a high price to create a high or superior image.

14. This gives incentives to customers who have completed the required
accumulated amount of purchases. However, the recipients can only use the
certificate in the same store.
15. This refers to the place occupied by the products in the mind of the
consumers.
16. This is the most common medium of promoting a product and services.
17. Where the members of the media are usually informed through a formal
statement or press release about a particular event where the product or
services will be presented.

18. Promoting of a product or service by identifying it with a particular brand.

19. This involves a salesperson who has personal and direct contact with the
prospective consumer.

20. The individual workers who are directly involved in the production,
marketing, and sale of the product and services.

21. This is a tool used by businesses and marketers to help determine a

product or brands offering.