THE MARKETING MIX (7P’S) IN RELATION

TO THE BUSINESS OPPORTUNITY AND

DEVELOPED A BRAND NAME
Marketing Mix

 is a set of controllable and connected variables

that a company gather to satisfy a customer
better than its competitor.
 It is also known as the “Ps” in marketing.
Originally, there were only 4Ps but the model
has been continually modified until it became
7P’s.
Marketing Mix

 The original 4 P’s stands for product,

place, price and promotion.
 Eventually, three elements have been
added, namely: people, packaging
and positioning to comprise the 7 P’s.
1. PRODUCT
 Tangible goods or intangible services
that the enterprise offers to its customers
 Identified with their brand names.
Why is it determined by brand names?
1. PRODUCT
 Different type of products:
1. Breakthrough products
2. Differentiated Products
3. Copycat Products
4. Niche Products
1.1 BREAKTHROUGH RODUCT

 Offers completely new performance benefits

 They may double the performance half the cost
 They may cater unique set of customers
 Needs higher level of customer education and
orientation
1.1 BREAKTHROUGH RODUCT

 Examples are borne out of

biotechnology field such as
vaccines and others.
1.2 DIFFERENTIATED RODUCT

 It try to claim a new space in the mind of the

customer different from the spaces occupied by
existing products.
 The performance benefits may be close to
existing products but there would be additional
benefits on special aspects of the product.
 1.2 DIFFERENTIATED RODUCT
 Example:
There are many different eyeglasses available in the market
today but Transitions® lenses was able to differentiate itself
from the rest because the lenses they use adapt to changing
light.
With this feature, the wearer gets additional protection
against ultraviolet rays, glare, and eye fatigue. Transitions®
lenses become very clear while indoors and become darker
outside, depending on the sunlight and other sources of light
and glare. It is actually a pair of eyeglasses and sunglasses
rolled into one.
1.3 COPYCAT RODUCT
 Offering more physical space in the
shelves, lower prices, easier access, and
promotional freebies.
 Will not make much impression to the
consumer’s mind
 Aggressive advertising may add to
market demand but with greater cots
1.3 COPYCAT RODUCT
 1.4 NICHE RODUCT
 They are products with lower reach, lower
visibility, low prices, and lower top of mind.
They are content to play minor roles in
specific and smaller market segments.
 They do not intend to compete directly with
the giants
1.4 NICHE RODUCT
 2. PACKAGING
 There were used to be a time when products
came wrapped in ordinary packaging that
prominently displayed the brand name, the
main attributes of the product, the company's
logo, and its place of business.
 2. PACKAGING
 There were used to be a time when products
came wrapped in ordinary packaging that
prominently displayed the brand name, the
main attributes of the product, the company's
logo, and its place of business.
5 Packaging
purposes:
1. Identifies the product, describes its
features and benefits, and complies
with government rules on specifying
its contents, weight, chemical
composition, and potency. It provides
easy brand identification for the
consumers.
 
2. Differentiates the
product from its
competitors and even from
its other brand offerings .
3. Lengthens the lifespan,
physically protects, and
extends the usefulness of
the product.
4. Packaging has become an
environmental issue by itself.
Recyclability and biodegradability
are now a major concern of
packagers and consumers alike.
5. The aforementioned
purposes of packaging have
increased the cost of
packaging and, therefore,
the price of the product.
• Packaging does not refer only to the
wrapper or container of the product.
• It can mean the bundle of products or
services that are put together to attract and
delight customers and also mean the terms
and conditions attached to the sale or after-
sale servicing of the product.
 3. PLACE
 represents the location where the buyer and
seller exchange goods or services.
 It is also called as the distribution channel.
 It can include any physical store as well as
virtual stores or online shops on the Internet.
Initial Location
Screening
 ln finding a good
location, one needs to
consider the following:
1. The number of customers residing or working in
the area, and the number of customers who
frequently pass through the area.
 
2. The density or number of customers per unit area.
 
3. The access routes to alternative locations and their
traffic count in those routes.
 
 
4. The buying habits of customers
or where they buy, at what time
and how frequent.
 
5. Locational features such as
parking spaces, foot access,
creature comforts, and the like.
In a similar way, the entrepreneur
must be able to determine the price
that comes with the location because
it will spell out the success or failure
of the business. The entrepreneur has
to consider the following:
1. The cost of buying or renting, renovating, and operating the
location.
 
2. Customer volume, drop-in rates (what percentage of customer
traffic would stop by the store) and sales conversion ratios (what
percentage of drop-ins would actually purchase something from
the store).
 
3. Revenues based-on the volume and mix of goods and services
expected to be sold at certain prices.
 
4. Profits.
 In addition to the above
factors, the final choice of
location must be based on
the following:
 1. Image and location
conditions.
This refers to the physical
look of a location,
sanitary conditions, crime and
safety levels, etc.
 2. Exact lit to target customers.
Is the location traffic generally
composed of  your target
customers?
 
 3. Clustering of competitor
establishments.
This oftentimes results in
drawing a bigger market to
the location.
 4.Future area development.
A certain location might not have
the most customers or the best
economics in the short term. but it
might become a central business
hub within the next five years.
 5.Fiscal and regulatory
requirements.
An entrepreneur would want to
set up shop in a town or city
with low tax rates, good
governance, excellent ,
infrastructures and great public
services.
 4. PEOPLE
 are the ultimate marketing strategy.
 This consists of each person who is involved in
the product or service whether directly or
indirectly. People are the ultimate marketing
strategy. They sell and push the product.
 Therefore, the right people are essential in
marketing mix in the current marketing scenario.
The marketing efforts of people
are organized at four levels:
(1) to create customer awareness;
(2) to arouse customer interest;
(3) to educate customers as they evaluate
their buying choices; and
(4) to close the sale and deliver the
products.
To arouse the interest of
customers, the enterprise
can use several people
or organizational
modalities.
 1. To outsource the people
from advertising agencies,
events management outfits,
call centers, and
telemarketers.
 2. To build in house
capabilities by hiring market
researchers, brand managers,
salespeople, public relations
officers, website writers,
orchestrators, etc.
2. To collaborate or enter
into partnerships with
principals, distributors,
dealers, and industry
associations.
5. PROMOTION
 It refers to the complete set of activities, which
communicate the product, brand or service to the
user.
 The idea is to attract people to buy your product
over others. Advertising, Personal Selling, Sales
Promotion, Direct Marketing, and social media are
examples of promotion.
5. PROMOTION
 -is the explicit communication strategy
adopted by an enterprise to elicit the
patronage, loyalty, and support not only from
its customers but also from its other
significant stakeholders.
Promotion encompasses all the direct
communication efforts of the
enterprise, such as advertising, public
relation campaigns, promotional
tours, product offerings, point-ofsale
displays, websites, flyers, emails,
letters, telemarketing, and others.
Effective promotion depends on
three critical factors:
1. the credibility of the
communicator
2. the message and the medium of
the message
3. the receptiveness of the audience
to all that is being communicated.
The idea is to match the size of
the market with the medium
used and the resources of the
enterprise.
Case Example : Ayala
Group’s Credibility as
Communication Strategy
 
The Ayala Group has been able to build
tremendous credibility in over a century of service
to the Filipino people. Their bank, the Bank of the
Philippine islands, is a conservative, safe but
growing financial institution with a tremendous
following from corporations, high net worth
individuals, and ordinary depositors.
 Its Ayala Land offerings sell upscale lots and
condominiums like hot cakes. Buyers know that Ayala
can deliver quality properties and that these properties
would be able to gain market value easily. Ayala’s
reputation in building Makati City has spilled over to its
numerous commercial centers and high-class
Subdivisions in many key locations. All Ayala has to do
in its promotion campaign is to announce that it is
‘Ayala‘ building the property and the people will buy.
6. PRICE
 It is the value of money in
exchange for a product or service
 Pricing depends on the business
objectives set by the enterprise.
 It is the major factor for the
customer in buying a product,
but it is not the only factor such
as in the case of buying
premium products.
Non-price factors outweigh the price
factor whenever a customer is buying a
premium item because he or she is more
particular about the 'premiumness' in
terms of quality, the status or image that
the product brings, shorter waiting time or
immediate delivery, and other such
decision criteria.
Non-price factors outweigh the price factor
whenever a customer is buying a premium
item because he or she is more particular
about the 'premiumness' in terms of quality,
the status or image that the product brings,
shorter waiting time or immediate delivery,
and other such decision criteria.
Finding the right price for a product
is, therefore, not a simple matter of
adding a mark-up on the cost of a
product or service, as some
companies do.
The enterprise should set the
prices of its products or services
based on its business objectives
such as the following:
 1. Profit maximization
 
2. Revenue maximization
 
3. Market share maximization
 
4: Attainment of the desired prestige or
quality leadership
 
5.Penetration, survival, or liquidation
 
6.Scarcity pricing or market
skimming
 
7. Cost recovery
 
8. Subsidy pricing
 
9. Marginal pricing
The first three pricing strategies pertain to
the related dynamics of the different price
ranges applied across different product
volumes or quantities while considering
the product costs incurred as these
products are bought or sold.
7. POSITIONING
 It is the way the customers perceive the enterprise
and its products or services in their minds.
 Positioning, in the context of a marketing battle
plan, has three overlapping objectives.
 1. It has an enterprise
perspective.
Enterprise scans the market
environment and decides to
position itself with products that
specifically address the needs of a
chosen target market.
 2. It has a competitive
perspective.

Enterprise has to differentiate

and distinguish itself from its
competitors.
3. Takes the
customers'
perspective.
 Longitude
Represents the product features
and attributes of competitors in
the marketplace.
*In determining its positioning,
the enterprise should be
mindful of the main value
proposition (MVP) to its
customers relative to its
competitors.
 Latitude
It lays out what's important to
the different customer
segments from their differing
points of view.
It must evaluate the other six P’s
of marketing to find out if they
complement and reinforce one
another. Each of the P’s of
marketing must communicate
something to the customer.
To establish the positioning
of its various products in the
marketplace, the enterprise
endeavors to build the brand
of each product.
3 purposes of
BRANDING:
1. To differentiate the product
from other products.
2. To avoid a commodity image
for the product.
3. To fill a space in the
consumer’s mind that would
prevent other products from
occupying the same space.
 Branding and brand equity
development should go hand-
in-hand with positioning.

Volvo stresses its safety brand

positioning by crashing their test
cars into brick walls to dramatize the
minimal effect on the owner-driver.
 
Powerful brands have become the generic
name for their product categories.

Example of Powerful brands:

Kleenex, Band-Aid, Xerox, and

Scotch Tape, Johnson and
Johnson, Procter and Gamble,
Pfizer, Ayala, and SM.
Enterprises can establish their
positioning either by starting
with their own product
creations or with their
customers’ outcome
expectations.
The competitive landscape of
the enterprise, relative to its
market, can be clearly mapped
out by laying out both the
latitudinal and longitudinal
market dimensions.