MARKETING MIX
ICT 11 Entrepreneurship
MARKETING MIX
widely accepted strategic marketing tool that combines the original
4Ps with the additional 3Ps in formulating marketing tactics for a
product or service
It is an interconnected set of strategies and decisions to propel the
growth of products and services.
MARKETING PRODUCT
MIX PLACE
PRICE
4Ps was introduced in the
1960s by E. Jerome McCarthy,
PROMOTION
an American marketing
professor.
PEOPLE
PACKAGING
POSITIONIN
G
Product
This element of the marketing mix indicates a
description of the product or service that you
are selling. Core Product
It can be tangible goods, a service, an
experience, an idea, or a digital product.
Supplementary
“Knowing your product
is the cornerstone of
your marketing success.”
Place Producer Producer Producer
Pertains to the distribution
strategy of your business to make
your product or service available Wholesaler
to the target market like physical Retailer
location, online market- places, Retailer
and direct sales.
Customer Customer Customer
Distribution Channels
Price
The amount of money that a
customer pays for a product or a
service.
Setting the correct price is crucial
for any business's success.
Loss Customer Loss Revenue
Elements to consider
Cost You need to determine the costs directly related to the product or
service.
Markups & You need to research the standard markups for products in specific
Margins industries
Profit margins refer to the revenue earned after paying the cost of
goods sold (COGS)
Competitors You need to examine the price of competitors and compare the
quality or differentiating factors against your product or service.
10 Pricing Strategy
Cost plus Also known as mark-up pricing.
pricing It is a method where businesses add a fixed percentage
on top of the cost it takes them to produce one product.
₱100 + 50% = ₱150
Unit Cost Mark-up Selling Price
10 Pricing Strategy
Competitive This is offering prices the same as to competitors, it
Pricing also known as the benchmark price
Usually used in markets with high competition with
similar products, like electronics, groceries, or fuel.
It can increase sales, but it might also reduce profit
margins if not carefully managed.
10 Pricing Strategy
Bundling a marketing strategy where multiple products or
services are packaged together as a single combined
offering, often at a discounted price compared to
purchasing each item separately.
$109 $84
VALU VALU
E E
$5
10 Pricing Strategy
Value-Based The company prices its products or services based
Pricing on what the customers are willing to pay.
This strategy involves understanding how much a
customer believes a product is worth and pricing the
product accordingly.
focuses on the specific benefits and value the product brings to the
customer
10 Pricing Strategy
Penetration This refers to setting low prices to increase market
Pricing share.
A company enters a market with super low pry to try
and draw attention and revenue away from the
higher priced competitors.
Once the desired market share is achieved the price will
eventually increase.
10 Pricing Strategy
Skimming This is the opposite of penetration pricing where
prices are initially high and then lowered to offer the
product or service to a wider market.
₱30,990
Initial lunch
₱20,990
After 5 months
10 Pricing Strategy
Decoy effect also known as the "asymmetric dominance effect," is a
phenomenon in consumer behavior and decision-making
where the presence of a third option (the decoy) can
influence a person's choice between two other options.
$25 $50 $55
10 Pricing Strategy
Charm pricing strategy that involves setting prices just below
Price a round number to make the price seem significantly
lower to consumers.
₱20 ₱19.99
Left-digit effect - the reduction in the leftmost digit from "2" to "1"
has a significant psychological impact, making the price seem
substantially lower
10 Pricing Strategy
Dynamic also known as surge pricing, demand pricing, or
Pricing time-based pricing, is a strategy where businesses
set flexible prices for products or services based on
current market demands.
Unlike traditional pricing methods that remain fixed for long
periods, dynamic pricing allows for price adjustments in real-time
or near real-time based on various factors such as customer
demand, supply conditions, competitor prices, and other external
factors like time of day or weather.
10 Pricing Strategy
Premium also known as prestige pricing or luxury pricing,
Price involves setting the price of a product or service
significantly higher than the competition.
also known as prestige pricing or luxury pricing,
involves setting the price of a product or service
significantly higher than the competition
it is intended to attract status-conscious consumers who are willing
to pay more for products that signify prestige or are perceived as
status symbols.
2 factors to
consider in pricing
Price ceiling is the most customers will pay for your product or
service
Remember the pricing principle that products/services are bought based on
perceived value, not on the cost you to produce or purchase or to provide a
purchase.
Price also known as the break-even price
floor Assessment of how much it costs you to produce the product or
service.
Roles of Promotion
Promotion Create Awareness
This element enables the Provide information about the product or
service
entrepreneur to inform potential
consumers about the product’s Build Interest and
Desire
availability, or to educate the Persuade your target market of the benefits of
consumer about the product. your product
Encourage Action
Persuade customers to take the next step,
whether that's making a purchase, signing up
for a newsletter.
Promotional Tools
Advertising This encompasses paid messages delivered through
traditional media (like television, radio, and print) and
digital media (including social media, search engines,
and websites). Advertising is a direct way to reach a
wide audience with a controlled message.
Promotional Tools
Sales These are short-term tactics designed to stimulate
Promotion quicker or greater sales of a product or service. This
can include discounts, coupons, contests, free
samples, and other incentives aimed at both
consumers and distributors.
Promotional Tools
Public Relations Activities aimed at creating and maintaining a
(PR) favorable public image for the company or brand.
This could involve press releases, events,
sponsorships, and community involvement initiatives
that generate positive media coverage and customer
goodwill.
Promotional Tools
Personal A direct form of communication where sales
Selling representatives interact with potential buyers to
explain or demonstrate the features of a product or
service, with the goal of making a sale. Personal
selling is highly effective in B2B markets and high-
value consumer transactions.
Promotional Tools
Direct A strategy that involves communicating directly with
Marketing targeted segments of customers to generate a response
or transaction. This includes email marketing, direct
mail, telemarketing, and SMS marketing.
Promotional Tools
Digital Utilizes the internet and online-based digital
Marketing technologies to promote products or services. This
broad category includes email marketing, content
marketing, social media marketing, search engine
optimization (SEO), and pay-per-click (PPC)
advertising.
Creating an appealing promotion involves choosing words
that not only attract attention but also evoke excitement
and a sense of urgency or value.
Name some alternative words or phrases that can enhance the
appeal of the following items.
1. Sale
2. Big Saving
3. Hurry
4. Last Chance
5. Best Deal
Name some alternative phases for “Buy Now” for the
following categories.
For Automotive Sales For Food and Beverage
For Real Estate For Travel and Experiences
For Technology and Gadgets For Educational Courses or Services
For Fashion and Apparel For Health and Wellness Products
People Importance of “People”
This element focuses on the role Customer Experience
of human resources in propelling Brand Representation
Service Delivery
the growth of the business. Building Relationships
Strategy used to enhance
It recognizes the significant impact that “People”
human interaction and service quality
have on a customer's perception of a Training and Development
Employee Engagement
brand, influencing their satisfaction and
Hiring Process
loyalty.
Empowerment
Feedback Loops
Importance of “People” The attitudes, skills, and
Customer Experience behaviors of employees can
Brand Representation greatly influence the customer
Service Delivery experience. Positive interactions
Building Relationships can lead to higher satisfaction,
Strategy used to enhance “People”
repeat business, and positive
word-of-mouth. Negative
experiences can drive customers
Training and Development
away and harm the brand's
Employee Engagement
reputation.
Hiring Process
Empowerment
Feedback Loops
Importance of “People”
Customer Experience
Brand Representation Employees are often the face of
Service Delivery the brand. They embody the
Building Relationships company's values and culture in
their interactions with customers,
Strategy used to enhance “People”
playing a crucial role in how the
brand is perceived.
Training and Development
Employee Engagement
Hiring Process
Empowerment
Feedback Loops
Importance of “People”
Customer Experience In service-based industries, the
Brand Representation quality of the service is
Service Delivery inseparable from the people
Building Relationships providing it. The competence,
professionalism, and empathy of
Strategy used to enhance “People”
service providers directly affect
the quality of service delivered.
Training and Development
Employee Engagement
Hiring Process
Empowerment
Feedback Loops
Importance of “People”
Customer Experience People in the organization play a
Brand Representation key role in building and
Service Delivery maintaining relationships with
Building Relationships customers, suppliers, and
Strategy used to enhance “People” partners. These relationships are
fundamental to business success.
Training and Development
Employee Engagement
Hiring Process
Empowerment
Feedback Loops
Importance of “People”
Customer Experience
Brand Representation
Providing comprehensive training
Service Delivery and development programs
Building Relationships ensures that employees have the
necessary skills and knowledge to
Strategy used to enhance “People” perform their roles effectively,
enhancing service quality.
Training and Development
Employee Engagement
Hiring Process
Empowerment
Feedback Loops
Importance of “People” Engaged employees are more
Customer Experience likely to be motivated and
Brand Representation committed to providing excellent
Service Delivery customer service. Strategies to
Building Relationships improve engagement include
Strategy used to enhance “People”
recognizing employee
achievements, providing
opportunities for growth, and
Training and Development
fostering a positive work
Employee Engagement
environment.
Hiring Process
Empowerment
Feedback Loops
Importance of “People”
Customer Experience
Brand Representation
Service Delivery Hiring individuals whose values
Building Relationships align with the company's culture
and who possess strong
Strategy used to enhance “People”
interpersonal skills can improve
service delivery and customer
Training and Development interactions.
Employee Engagement
Hiring Process
Empowerment
Feedback Loops
Importance of “People”
Customer Experience
Brand Representation
Service Delivery Empowering employees to make
Building Relationships decisions can lead to more
personalized customer service
Strategy used to enhance “People” and quicker resolution of issues,
enhancing customer satisfaction.
Training and Development
Employee Engagement
Hiring Process
Empowerment
Feedback Loops
Importance of “People”
Customer Experience
Brand Representation
Service Delivery Establishing mechanisms for
Building Relationships customer and employee feedback
can help identify areas for
Strategy used to enhance “People” improvement in service delivery
and employee performance.
Training and Development
Employee Engagement
Hiring Process
Empowerment
Feedback Loops
100% of employees are people.
100% of customers are people.
100% of investors are people.
If you don’t understand people?
You don’t understand business.
- Simon Sinek
Importance of Packaging
Packaging First Impression
This element considers the Brand Identity
attributes of the product that may Communication
be affected as it goes through the Protection and Convenience
Sustainability
distribution channels.
Strategies for Effective Packaging
Also refers to how the product or service Design for Target Audience
is presented to your customers in terms of Be Distinctive
its visual appeal. Clarity and Simplicity
Reflect Brand Essence
Consider Functionality
Sustainability
Importance of Packaging Packaging is often the first point
of contact or interaction that
First Impression
Brand Identity customers have with a product,
Communication especially in retail settings. An
Protection and Convenience
attractive and distinctive package
Sustainability
can make a product stand out on
Strategies for Effective Packaging
the shelves, grab customers'
Design for Target Audience attention, and influence their
Be Distinctive purchase decisions.
Clarity and Simplicity
Reflect Brand Essence
Consider Functionality
Sustainability
Importance of Packaging
First Impression
Packaging plays a crucial role in
Brand Identity conveying the brand's identity
Communication and values. Colors, designs, and
Protection and Convenience
materials used in packaging can
Sustainability
communicate a lot about what
Strategies for Effective Packaging
the brand stands for, its market
Design for Target Audience positioning, and its target
Be Distinctive audience.
Clarity and Simplicity
Reflect Brand Essence
Consider Functionality
Sustainability
Importance of Packaging Packaging is a communication tool
First Impression that provides consumers with
Brand Identity
information about the product, such
Communication
Protection and Convenience as its uses, benefits, features,
Sustainability instructions for use, and
Strategies for Effective Packaging ingredients. This information can
help consumers make informed
Design for Target Audience purchasing decisions.
Be Distinctive
Clarity and Simplicity
Reflect Brand Essence
Consider Functionality
Sustainability
Importance of Packaging
First Impression
Beyond aesthetics, packaging
Brand Identity serves the practical purpose of
Communication protecting the product from
Protection and Convenience
damage, contamination, or
Sustainability
tampering during transportation
Strategies for Effective Packaging
and storage. It also offers
Design for Target Audience convenience to consumers in terms
Be Distinctive of use, storage, and transport.
Clarity and Simplicity
Reflect Brand Essence
Consider Functionality
Sustainability
Importance of Packaging
First Impression
Brand Identity
Increasingly, packaging is seen
Communication through the lens of sustainability.
Protection and Convenience Eco-friendly packaging that
Sustainability
reduces waste and environmental
Strategies for Effective Packaging impact can appeal to
environmentally conscious
Design for Target Audience
Be Distinctive consumers and positively affect a
Clarity and Simplicity brand's image.
Reflect Brand Essence
Consider Functionality
Sustainability
Importance of Packaging
First Impression
Brand Identity
Communication
The design should appeal to the
Protection and Convenience
Sustainability product's target demographic,
Strategies for Effective Packaging
reflecting their tastes,
preferences, and values.
Design for Target Audience
Be Distinctive
Clarity and Simplicity
Reflect Brand Essence
Consider Functionality
Sustainability
Importance of Packaging
First Impression
Brand Identity
Communication
Protection and Convenience
Innovative and unique packaging
Sustainability
can make a product stand out in a
Strategies for Effective Packaging
crowded market.
Design for Target Audience
Be Distinctive
Clarity and Simplicity
Reflect Brand Essence
Consider Functionality
Sustainability
Importance of Packaging
First Impression
Brand Identity
Communication Packaging should clearly
Protection and Convenience
Sustainability
communicate what the product is
and what it does. Overly
Strategies for Effective Packaging
complicated designs can confuse
Design for Target Audience consumers.
Be Distinctive
Clarity and Simplicity
Reflect Brand Essence
Consider Functionality
Sustainability
Importance of Packaging
First Impression
Brand Identity
Communication
Protection and Convenience The packaging should be
Sustainability consistent with the overall brand
Strategies for Effective Packaging image and messaging across
other marketing channels.
Design for Target Audience
Be Distinctive
Clarity and Simplicity
Reflect Brand Essence
Consider Functionality
Sustainability
Importance of Packaging
First Impression
Brand Identity
Communication
Protection and Convenience
Sustainability The practical aspects of opening,
Strategies for Effective Packaging using, and storing the product
should be easy and convenient.
Design for Target Audience
Be Distinctive
Clarity and Simplicity
Reflect Brand Essence
Consider Functionality
Sustainability
Importance of Packaging
First Impression
Brand Identity
Communication
Protection and Convenience
If possible, use materials and
Sustainability
designs that are recyclable,
Strategies for Effective Packaging
reusable, or reduced in
Design for Target Audience environmental impact.
Be Distinctive
Clarity and Simplicity
Reflect Brand Essence
Consider Functionality
Sustainability
"Packaging can be theater;
it can create a story."
- Steve Jobs
Positioning Strategies upon which businesses can
base their positioning
This concept considers how your
product or service offering is
positioned in the minds of your Based on Product
Characteristics
target customers.
Based on price
Effective positioning ensures that your Based on quality or luxury
target customers perceive your brand or
Based on product use or
product as the best solution to their needs
application
or problems.
Based on competition
Strategies upon which businesses can
base their positioning
Associate the brand with a
certain characteristic that is
Based on Product beneficial to the community
Characteristics
Based on price
For example, the SM chain of stores
Based on quality or luxury emphasizes that they have the goods that
Based on product use or people want to buy.
application
Based on competition
Strategies upon which businesses can
base their positioning
This aims to offer the cheapest or
the most affordable product or
Based on Product
Characteristics
service in the market.
Based on price
Based on quality or luxury
For example, Ever Bilena emphasizes
Based on product use or more affordable quality cosmetics.
application
Based on competition
Strategies upon which businesses can
base their positioning
Associates the brand with high
quality or prestige such that the
Based on Product
Characteristics
customer would desire it
regardless of the price.
Based on price
Based on quality or luxury
For example, the ROLEX brand for
Based on product use or watches.
application
Based on competition
Strategies upon which businesses can
base their positioning
Based on Product Emphasizes the particular use of
Characteristics
the product.
Based on price
For example, meal replacement
Based on quality or luxury supplements target those who lack time to
have a convenient meal.
Based on product use or
application
Based on competition
Strategies upon which businesses can This uses the competition as a
base their positioning reference for differentiating the
uniqueness of one’s product or
Based on Product service.
Characteristics
It follows similar benefits offered
Based on price
by the competitor.
Based on quality or luxury
Based on product use or This can be observed in the way
application smartphone manufacturers position the
Based on competition latest gadget offerings.
"Positioning is not what you
do to a product. Positioning
is what you do to the mind
of the prospect."
— Jack Trout
Process Importance of Process
In Marketing Mix
Refers to the standard procedures
or systems involving internal
marketing-related activities and Customer Experience
external activities. Service Quality Perception
The process is important as it reflects Differentiation
how members of the enterprise effectively
and efficiently follow the workflow of Efficiency and Cost-
effectiveness
procedures.
Importance of Process
In Marketing Mix
The process directly impacts the
customer's experience with the
service or product. Smooth,
Customer Experience
efficient processes are likely to
Service Quality Perception enhance customer satisfaction,
while cumbersome or confusing
Differentiation processes can lead to
dissatisfaction.
Efficiency and Cost-
effectiveness
Importance of Process
In Marketing Mix Customers often judge the quality
of a service based not only on the
Customer Experience outcome but also on the process of
service delivery. Aspects such as
Service Quality
speed, convenience, and
Perception
attentiveness play a critical role in
Differentiation
perceived service quality.
Efficiency and Cost-
effectiveness
Importance of Process
In Marketing Mix
In industries where products and
Customer Experience services are alike, having a unique
Service Quality Perception or better way of delivering them
can help you stand out from
Differentiation competitors.
Efficiency and Cost-
effectiveness
Importance of Process
In Marketing Mix
Well-designed processes can
Customer Experience improve efficiency, reduce costs,
Service Quality Perception
and ensure that resources are used
effectively, benefiting both the
company and its customers.
Differentiation
Efficiency and Cost-
effectiveness
What is Physical Evidence in the marketing mix?
What are the key components of Physical Evidence?
Why is Physical Evidence important in the Marketing Mix?
Identify the Strategies for Effective Use of Physical Evidence
Thank You.
ICT 11 Entrepreneurship
