ENTREPRENEURSHIP

LESSON 3.1.3 PRICE

LESSON 3.1.4 PROMOTION
LESSON 3.1.5 PEOPLE
GROUP 2
ABM 12-PHILIP KOTLER
MRS. MELANI G. LOZADA
LA ROSA, SHANE LENNETH L.
BORJA, LAWRENCE B. Subject teacher
VILLANUEVA, CATHLYN P.
MENDOZA, ABBY V.
MOLLEDA, ALRHEY C.
LESSON 3.1.3
PRICE
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Terms of Payments are price
agreements, including
discounts, timing of payments
and credits agreements.
Discounts are reduction in the
selling, price given to customers
for varying reasons: paying in
cash, performing certain
functions, buying in large
quantities, and off-season
buying.
5. Price Adjustments Changes in cost, competitive
conditions and consumer demand require changes in price.
Prices can be adjusted in the list prices, escalator clauses,
surcharges, mark-ups, markdowns, and rebates.

a. List prices are regularly quoted prices to customers, as in

catalogs, price tags and purchase orders.

b. Escalator clauses happen when the contract which allows

price increase after the sale is concluded before delivery is
made.
c. Surcharge is the supplementary to list prices. These
are additional charges added to the total price.

d. Mark-ups happen when the company is raising

regular selling prices because demand is unexpectedly
high, or costs are rising.

e. Markdowns are reductions from original selling prices

to meet lower prices of competitors, overstocking shop-
worn merchandise, and increase customer traffic. This
activity can affect profit generation
Pricing Strategy

In determining the right price, the following factors must be

considered:

1. The customer's perception of value of the kind of business

firm:
2. The costs involved such as overhead, storage, financing,
production, and distribution; and
3. The profit objectives of the firm.
The price set by the firm may be established through any of the
following methods:

1. Cost-plus pricing this method covers all costs, variable and

fixed, plus an extra increment to deliver profit.
2. Demand pricing-this is a method of pricing where the firm
sets prices based on buyer desires. The range acceptable to the
target market is determined.
3. Competitive pricing-this method of pricing calls for price-
setting on the basis of prices charged by competitors.
4. Market pricing-this is a form of cost-oriented pricing in which
the firm sets prices by adding per-unit merchandise costs,
operating expenses, and desired profit .
To attain the objectives of the organization, one company can
3 single or multiple strategies depending on the needs of
use
organization to meet their sales objectives. Factors that
Influence Price Determination.

Factors that Influence Price Determination

1. Market Demand
2. Competitors Strategy
3. Economic
4. Social Concerns
LESSON 3.1.4
PROMOTION
“Enthusiasm is the sparkle in your eyes,
the swing in your eyes, the swing in
your gait, the grip of your hand and the
irresistible surge of will and energy to
execute your ideas”

- Henry Ford
Promotion is any form of
communication which is
used to inform, persuade
and remind people about
an organization or
individual's goods, services,
image, ideas, community
involvement or impact on
the society.
Promotional Mix is a combination of the strategies to accomplish
the promotion objectives of an organization. It includes advertising,
publicity, personal selling, and sales promotion that help the
organization to fully inform persuade and remind the customer
about the organization goods and services. It raises customer
awareness of a product or brand, generating sales and creating
brand loyalty.

These are the following:

1. Advertising is a paid, non-personal communication regarding

goods, services organizations, people, places and ideas that is
transmitted through various media by business firms, government
and other non-profit organization and individuals who are in some
way identified in the advertising message as the sponsor.
2. Publicity is a non-personal communication regarding goods,
services, organizations, people, places and ideas that is transmitted
through various media but not paid for by an identified sponsor.

Example: Corn cola will be the sponsor for the family show aired in
channel 7.

3. Personal Selling involves oral communication with one or more

prospective buyers by paid representatives for the purpose of
making sales. Normally, this is done through door to door selling.

4. Sales Promotion involves paid marketing communication

activities that stimulate consumer purchases and dealer effective.

Example: Ray or take one, bodega sale, discount co upons.

The Selection of a Promotion Mix Depends on Several
Variables:

1. Product Life Cycle-An organization must be aware of

the different stages of PLC and the company status to fully
design a strategy.
2. Company Characteristics - The more products line the
company gains the better tools to serve the organization.
3. Relations with Middleman - The dealer such as retailer
or wholesaler can give impact about company effectiveness
and efficiency.
Promotion Strategy How the products or service of the company will be promoted
is an important component of the marketing strategy. The promotion strategy must
include the following:

1. Advertising Aspects
a. Advertising budget
b. Positioning message
c. First year media schedule

2. Public Relations - This will be a detailed presentation of the publicity strategy of

the firm. This will include a list of media that will be tapped to convey the firm
message to the target market. The schedule of special events like produce
launching will also be included
.
3. Sales Promotion - These are means used to support the sales message like
special sales, coupons, contests, premium awards, trade-in, among others,
4. Personal Sales present the sales strategy which includes:

a. Pricing procedures
b. Rules on returns and adjustments
c. Methods of sales presentations
d. Generation of leads
e. Policies on customer services
f. Compensation of salesmen, and
g. Responsibilities of the salesmen

1. Develop a promotional strategy on the product discussed in the

case study of “Matthew School Promo”
2. Consider the promotional mix discussed in the classroom.
LESSON 3.1.5
PEOPLE
“The greatest discovery of my
generation is that people can alter
their lives by altering their attitudes.”

- William james
People marketing entails endeavors aimed at cultivating the
attention interest and preferences of a target market toward a
celebrity or authority figure These celebrities could be real individuals
or fictitious ones. (p. 31 Principles of Marketing by Serrano 2016)

Example:

1. Political candidate who promotes his candidacy for a particular

position.
2. Author to promote their books.
3. Celebrity endorsement makes use of famous athletes, entertainers
and experts or authority figures to promote products for profit
organizations or social causes for not-for-profit organization .
People can be considered as product by providing
satisfaction to the consumer. These are the
celebrity, model, artist, dancer, singer and the like.
Businesses can improve their ability to attract, retain
and improve productivity by applying the following
five-step PRIDE process:
P Provide a Pleasant Working Environment

R Recognize, Reward and Reinforce the Good Behavior

I Involve and Participate in the activities and programs

D Develop Skills and Attitude

E Evaluate and Measure Performance

Networking

It involves socioeconomic business activity by which

entrepreneurs and business people meet to form business
relationships to recognize, create, or act upon business
opportunities, share information and seek potential partners
for business ventures. The following tips can help someone
to become successful in networking career:

1. Be humble and confident when dealing with others.

2. Remember, both of you are important in the meeting.
3. Make the first meeting success, Remember first
impression.
4. Share information to create understanding.
5. Praise other people avoid being arrogant.
6. Let other people share, do not monopolize a conversation.
7. Thank someone.
8. Ask for referrals.
9. Bring the best ideas avoid talking nonsense or junk ideas.
10.Be conscious in time, some people are buy.
Network Marketing

The concept is used to penetrate the market as fast as

possible without entailing expensive marketing costs
such as advertising and promotions. Network marketing
is a non-traditional business with unconventional results
(p.26 A Smart & Practical Guide for New Entrepreneurs
by Sanchez 2018)
THANK YOU