The Marketing Mix:

The 7Ps of Marketing

Marketing Mix
It is a widely accepted
strategic marketing tool
that combines the 4Ps
(product, place, price,
promotion) with the
additional 3Ps – people,
packaging, and process –
in formulating marketing
Entrepreneur must use the 7 Ps
model to do the following:
Conduct a situation
analysis
Set objectives
Conduct SWOT or
competitive analysis
Ultimately come up with
marketing strategies and
A challenge to a budding entrepreneur is to
ask the following questions at the onset:

Product
- What product or service
is the most appropriate for
the opportunity, and why
will customers buy or avail
them?
A challenge to a budding entrepreneur is to
ask the following questions at the onset:

Place
- What location is best
suited for the business
where there are more
potential customers?
A challenge to a budding entrepreneur is to
ask the following questions at the onset:

Price
- What is the most
appropriate price, and
what pricing strategies
will be used for the
target customers?
A challenge to a budding entrepreneur is to
ask the following questions at the onset:
Promotion
- What is the most
effective and
advertisement or
combination of
advertisements and which
advertising tool should be
used to drive awareness
A challenge to a budding entrepreneur is to
ask the following questions at the onset:

People
- What type of people
need to be hired? What
are the basic skills
needed for the job? What
leadership style will be
applied by the
A challenge to a budding entrepreneur is to
ask the following questions at the onset:
Packaging
- What is the best
packaging for the product
that is attractive enough to
customers and cost-
efficient at the same time?
What physical evidence
does the entrepreneur
A challenge to a budding entrepreneur is to
ask the following questions at the onset:

Processing
- What is the most
compelling feature of the
product or the business
that will make a
difference in the lives of
the customers?
 Product
It 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
The three-level concept of products or services
summarizes the reasons that a customer decides
to buy a product or avail of a service.

1.Core Benefits of
the Product or
Service
- major factors why a
customer buys a
products or avails of
The three-level concept of products or services
summarizes the reasons that a customer decides
to buy a product or avail of a service.
2. Physical
Characteristics of the
Product or Service
- Once the core benefit
has been satisfied and
options are available to
the customers, the
tendency is to look for the
The three-level concept of products or services
summarizes the reasons that a customer decides
to buy a product or avail of a service.

3. Augmented Benefits
of a Product or
Services
- Additional benefits;
entrepreneurs must
provide customers with
augmented benefits
 Place
It refers to location or
medium of transaction.
The strategic location
depends on the nature
of the business and the
primary target market.
 Place
It cyber location, the
entrepreneur must use
Web analytics data to
understand Web site
performance
 Place
Place also covers the
product distribution and
the whole business logistics
The logistics side for
products should cover
production, ordering and
receiving raw materials or
finished goods from the
suppliers, storage, reorder
points, and transportation
 Place
The logistics side for
services covers the
physical evidence or
service scape, service
providers, and service
delivery process, as
well as policies and
procedures of the
 Place
One of the major
objectives of the
entrepreneur for place is
to provide customers
with pleasant experience
in buying the product or
availing of the service so
that they will keep on
 Price
It is the peso value
that the entrepreneur
assigns to a certain
product or service
after considering its
costs, competition,
objectives, positioning,
and target market.
Most common pricing strategies
1.Bundling – two or
more products or
services in one
reduced price
2.Penetration pricing
- setting low prices to
increase market share
Most common pricing strategies
3. Skimming - prices are
initially high and then
they are lowered to
offer the product or
service to a wider
market
4.Competitive pricing
- benchmarking prices
Most common pricing strategies
5. Product line pricing –
pricing different
products or services
within a parallel
product array using
varying price points
6.Psychological pricing
– psychology and
Most common pricing strategies
7. Premium pricing –
setting a very high
price to reflect elitism
and superiority
8.Optional pricing –
adding an extra product
or service on top of the
original to generate
Most common pricing strategies
9. Cost – based pricing
– the basis of mark
up is the cost of
sales
10.Cost plus pricing –
the markup is based
on a certain
Two classifications of costs
1.Variable cost
(controllable)
- Directly proportional to
the number of products
manufactured or to the
number of services
performances.
Two classifications of costs
2. Fixed costs
(uncontrollable)
- Not directly proportional
to the manufacturing of a
product or to the
performance of the
service.
- Usually the cost of
The entrepreneur must follow these
general pricing guidelines to make
the business sustainable and thriving.
1. Do not price the product
or service below it costs.
2. Monitor competitor’s
prices, and ensure that
your prices are at par with
them unless the product
or service is really way
superior to the
3. Align prices with the
other 6Ps
4. Implement price
strategies that are
relevant to your
market segment.
5. Align pieces with
your business
 Promotion
It involves
presenting the
products or services
to the public and
how these can
address the public’s
needs, wants,
 Promotion
A strong integrated
marketing
communication plan
(IMC) should be
devised to deliver the
compelling messages
effectively.
Key marketing messages for
promotion can be the following:
1.Value proposition or
USP of the product or
service
2.Product or service
image
3.Business image
Promotion Tools:
1.Advertising –
influences the
behavior of a
customer to choose
the product or service
of the entrepreneur
over the competitors
Promotion Tools:
Objectives of advertising
a. Informing, educating,
and familiarizing the
public with the product
or service offerings
b. Building a trustworthy
image
c. Increasing sales
Promotion Tools:
Examples of advertising
Television
Radio
Internet
Mobile phones
Print
Out-of-home
Promotion Tools:
2. Selling – act of
trading a product
or service for a
price or a fee
Promotion Tools:
3. Sales promotion
– short-term
promotional gimmicks
wherein practical
incentives and
appealing activities are
incorporated to entice
the customers to buy
Here are common examples of
sales promotion in the Philippines
Sales discount
Raffles
Contest and games
Promo items
Product or service bundles
Trade fairs or exhibits
Sample distributions
Rewards
Promotion Tools:
3.Public relations
– image-building
initiatives of the
entrepreneur to make
the name of the
business reputable to
stakeholders
Examples of PR strategies
Press Conferences
Launching Events
Strong media relations
through press kits
Social responsibility
events
Lobbying
Web public relations
 People
A strong integrated
marketing
communication plan
(IMC) should be
devised to deliver the
compelling messages
effectively.
 People
The entrepreneur
must list the criteria of
the following job
offers, as well as the
requirements such as
academic background,
job experience, skills
or expertise, attitude,
 Packaging
It is how the product or
service is presented to
customers.
It is the overall
identification of the
product from
competitors
It preserves the shelf
 Packaging
It plays a vital role in
persuading a customer
to try a product or avail
of a service based on
what he or she has
seen. In fact, packaging
sometimes matters
more than the
 Process
It is defined as a
step-by-step
procedure or activity
workflow that the
entrepreneur or
employees follow to
effectively and
 Process
The internal process
includes the back-
office operations,
wherein employees or
machines process
customers request
without necessarily
 Process
The external
process includes the
actual servicing
where customers
are part of the
process.
Fundamentals of Brand
Management
 Brand
It refers to the identity
of a company, of a
product, of a service, or
of an entrepreneur
himself or herself.
Symbol of promise or
assurance from the
entrepreneur
 Brand Management
It is the supervision of the
tangible and intangible
elements of a brand.
Tangible elements –
product itself, its
packaging, its price, and its
location
Intangible elements –
perception and relationship
 Branding
It is a process of
integrating the
strategies formed
from the marketing
mix to give an
identity to the
product or service.
The goals of branding include
the following:
1.establishing to target
customers that the
business id reliable
and trustworthy and
that the product or
service is the superior
solution to their
The goals of branding include
the following:
2. differentiating
with competitors
3. Driving customer
loyalty and
retention
 Brand Name
It is a major
differentiator of the
entrepreneur against
competitors.
To be different and
catchy, a brand name
must posses the
Unique
Extendable
Easy to remember
Can describe the benefits of the
product or service
Can be converted to other
dialects/languages in case the
entrepreneur expands to other
territories
Can describe a product
Can describe concrete qualities
Note:
The brand is the
marketing element that
sticks to the mind of the
target customers and
the public. Therefore,
the entrepreneur must
think critically on hoe to
position the brand and
Can you name the
top brand that first
comes to mind
when these generic
products or services
are mentioned?
1.Toothpaste 1.Television
2.Soap 2.Chocolate
3.Coffee 3.Refrigerato
4.Milk r
5.Car 4.TV station
6.Rubber 5.Soft drinks
shoes 6.Smartphon
7.Mall e
7.University