THE MARKETING MIX:

THE 7Ps OF
MARKETING
 OBJECTIVES:
 Define Marketing Mix.
 Distinguish the 7Ps of Marketing
 Acknowledge the importance of
different Marketing Mix
 THE MARKETING MIX:
THE 7Ps OF
MARKETING
MARKETING MIX
a widely accepted strategic marketing tool that
combines the original 4Ps (Product, Place,
Price, Promotion) with the additional 3Ps –
people, packaging and process – in formulating
marketing tactics for a product or services
 A product is any physical good,
service or idea that is created by
an entrepreneur or an innovator
in serving the needs of the
customers and addressing their
existing problems.

PRODUCT
THREE LEVEL CONCEPTS
• Level 1: Core Benefits of the
Product or Service
• Level 2: Physical Characteristics of
the Product or Service
• Level 3: Augmented Benefits of a
Product or Service
A place refers to a location or the
medium of transactions.
(e.g. Wi-fi Access, Spacious
Parking Area, Logistics site)

PLACE
Price is the peso value that the
entrepreneur assigns to a certain
product or service after
considering its costs, competition,
objectives, positioning, and target
market.

PRICE
 Here are the most common pricing
strategies:
• Bundling – This refers to two or more products or
services in one reduced price (e.g. 3-in-1 Coffee for P
8.00, manicure and pedicure for P 150)
• Penetration Pricing – This refers to setting low prices
to increase market share, but the entrepreneur will
eventually increase the price once the desired market
share is achieved.
• Skimming – This is the opposite of penetration pricing
where prices are initially high and then they are
lowered to offer the product or service to a wider
market.
• Competitive Pricing – This refers to
benchmarking prices with the competitors.
• Product Line Pricing – This refers to pricing
different products or services within a parallel
product array using varying price points (e.g.,
LED TV is more expensive than the LCD TV
even if under the same brand)
• Psychological Pricing – This considers the
psychology and positioning of price in the
market
• Premium Pricing – This refers to setting a very
high price to reflect elitism and superiority (e.g.,
prices of signature clothes, bags, perfumes)
• Optional Pricing – This refers to setting
to adding an extra product or service on
top of the original to generate more
revenue
• Cost-based Pricing – The basis of markup
is the cost of sales
• Cost plus Pricing – The markup is based
on a certain percentage of cost
• Promotion involves presenting the
products or services to the public
and how these can address the
public’s needs, wants, problems,
or desires. The main goal of
promotion is to gain attention.

PROMOTION
 Key marketing messages for
promotion can be the
following:
1. Value proposition or unique
selling proposition of the product or
service
2. Product or service image
3. Business image
4. Business values and philosophy
 PROMOTIONAL TOOLS
• Advertising – This is the type of
communication that influences the
behaviour of the customer to
choose the product or service of the
entrepreneur over the competitors.
The entrepreneur can choose to advertise
through the following:
• TELEVISION – regular channels, cable TV
• RADIO – AM and FM radio
• INTERNET – emails, websites, blogs, social
media, search engines, podcasts
• MOBILE PHONES – text messages, mobile
applications, mobile internet
• PRINT – newspapers, magazines, flyers,
directories, signage, posters
• OUT-OF-HOME – billboards, buses, bus stops,
trains, train stations, taxis, street advertisement
• Selling – This is the act of trading a product
or service for a price or fee. The
entrepreneur must identify the target
customers who will likely buy the product or
service.
• Sales Promotion - These are short-term
promotional gimmicks wherein practical
incentives and appealing activities are
incorporated to entice the customers to buy
the product or avail of the service. These are
also called “below-the-line” promotions.
 Common Examples of Sales Promotions:
• Sales discounts or discount coupons
• Raffles
• Contests and games
• Promo items
• Product or service bundles
• Trade fairs or exhibits
• Sample distributions or free taste/free trials
• Premiums (Free toys for fast food meals)
• Point-of-purchase promotions
• Advertising specialties
• Rewards
• Public Relations – These are image-building initiatives of
the entrepreneur to make the name of the business
reputable to stakeholders, such as the target customers,
government agencies, business partners, media and the
public.
Examples of PR strategies:
• Press conferences
• Launching events
• Strong media relations through press kits
• Social responsibility events (e.g., charitable or community
events)
• Lobbying (e.g., good relationship with government
officials)
• Web public relations (e.g., blogs, social media, e-mails,
word-of-mouth)
People play a vital role in servicing
customers even though the entrepreneur
sells only physical goods. With the
influx of various competing products or
services, one of the major
differentiators is how people or
employees make a difference in the
lives of the customers.

PEOPLE
• Packaging is how the product or service
is presented to customers. It is the overall
identification (look and feel) of the
product or service. This will determine
the uniqueness of the product from the
competitors. Packaging preserves the
shelf life of the product or service.

PACKAGING
 SERVICESCAPE
SERVICESCAPE refer to the
overall ambiance of the place
where the service is performed
• Process is defined as a step-by-step
procedure or activity workflow that the
entrepreneur or employees follow to
effectively and efficiently serve
customers. Its component include
input, throughput and output.

PROCESS