Tagline

- is something you want your customers to remember your product

- it is also the perception of the customers to your product.
- it is the most vital feature/characteristic of your product or business communicated to customers.

Marketing Mix

- Is a set of controllable and connected (well- selected) 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. 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.

The 7 P’s of Marketing Mix

1. Product

- marketing strategy typically starts with the product. Marketers can’t plan a distribution system or set a price if
they don’t know exactly what product will be offered to the market.
- is anything that can be offered for satisfaction. It may be an idea, a physical entity (a good), a service or any
combination of the three.
- a bundle of satisfaction which the buyer receives as the result of lease or purchase.
- it includes the physical good or service itself (its form, taste, smell, color, and texture), the function of the
product in use, the packaging, the label, the warranty, the manufacturer's and the retailer's services.

Product strategy

- is often called the roadmap of the product and outlines the end-to-end vision of the product and it outlines
what the product will become.
- companies utilize the product strategy planning and marketing to identify the direction of the company's
activities.

Good product strategies can either:

1. Meet an existing need with a quality solution

2. Create a need by offering something so modern and special that customers decide they don't want to live
without it.

Some products, like organic foods, meet customer concerns about the environment and their personal health.

Strategies for Mature Products

1. Develop new uses or functions and new purposes for products. (new uses)
2. Develop new or add more latest product features. (more uses)
3. Find new classes of consumers or new potential markets for modified products. (more users)

Marketing Strategy

- To be successful, a firm must possess one or more competitive advantages that it can leverage in the market in
order to meet its objectives.

Competitive advantage

- is something that firm does better than its competitor that gives it an edge in serving customer's needs and /or
maintaining mutually satisfying relationships with important stakeholders.(Lecture review of CPME class 2016).
 Product should be well selected/ produced, something that satisfies the needs and wants of the customers, because
the product can either be strength or a weakness of the business.

2. Place

- represents the location where the buyer and seller exchange goods or services. It is also called the distribution
channel. It can include any physical store as well as virtual stores or online shops on the Internet.
- is making the products available in the right quantities and locations where customers want them.

Distribution Strategy

- refers to the process of moving goods and services from the company to the customer.

Channel of Distribution

- is made up of people or organizations involved in the distribution process.

Common Distribution Channels

1. Direct sale

- is when the company/firm moves its goods directly to the ultimate users. (Uses salespersons to sell the product)

2. Manufacturer’s representative

- a wholesaler employed one or several sellers and paid on commission basis according to quantity sold.

3. Wholesalers

- are channel members that sell to retailers or other agents for further distribution through the channel until they
reach the final users.

4. Brokers

- are distributors who buy directly from wholesaler and sell to retailers or end users. They have no storage.

5. Retailers

- are the ones who sell directly to customers in the store.

6. Direct mail

- includes printed materials used in a targeted campaign to consumers.

Intensity of Channel Coverage

1. Exclusive distribution

- is the limited number of middle men are used in a geographic area.

2. Selective distribution

- is organizing a moderate number of whole sellers or retailers.

3. Intensive distribution

- is organizing a large number of middlemen that are used to obtain widespread market coverage and channel
acceptance.
Physical Distribution

- Covers the broad range of activities in connection with the efficient delivery of raw materials, parts, semi-
finished items, and finished products to designated places and designated times and in proper conditions.

Ways of Physical Distribution

1. Transportation of goods

2. Inventory Management

- Consists of a continuous flow of goods or tangible products to match the quantity of goods kept in inventory as
closely as possible with sales demand.

3. Warehousing

- carries the physical facilities used primarily for the storage of gods held in anticipation of sales and transfers
within a distribution channel.

4. Retailing

- refers to those business activities involved with the sales of goods and services to the final consumer for
personal, family or household use.

5. Scrambled merchandising

- takes place when a retailer adds goods and services that are unrelated to each other or the original business of
the retailer.

6. Wholesaling

- is buying or handling of merchandise in large quantity and its subsequent resale to organizational users, retailers
and/or other wholesalers but not the sale of significant volume to final consumers.

A good distribution channel has the capacity to sell goods as fast as it could.

3. Price

- is a serious component of the marketing mix.

- is the value of money in exchange for a product or service.
- is the amount or value that a customer gives up to enjoy the benefits of having or using a product or service.

Some Pricing Strategies

1. Penetration Pricing

- uses low prices to capture/attract the larger/mass market for a product or service.

2. Price Skimming

- uses high prices to attract the segment more concerned with product quality, uniqueness or status than price.

3. Cost-based price strategy

- is when the firm sets prices by computing merchandise, services and overhead costs then adding the desired
profit to those figures.
4. Demand-based price strategy

- is when the firm sets prices after researching consumer desires and makes sure the range of prices is acceptable
to the target market.

5. Competition-based price strategy

- is when the firm sets prices in relation to the competitors.

6. Customary pricing

- is when price is maintained over an extended period of time.

7. Variable pricing

- is when the price responds to costs fluctuations or differences in demand.

8. Flexible pricing

- is based on customer’s ability to negotiate or buying power of the customer.

9. Odd Pricing

- are prices set at levels below even values. The entrepreneur uses odd numbers to attract customers in pricing a
product.

10. Price-quality association

- is when the consumers believed that high price represents high quality and low prices represent low quality.

11. Prestige pricing

- is when customers set price floors and will not buy at prices below those floors. Above price ceilings, items
would seem too expensive.

12. Loss Leader pricing

- is selling key items at low prices to gain consumer loyalty within its product line.

13. Price lining

- is when instead of setting one price for a single model of a good or service, the firm sells two models of different
quality and features at different prices.

14. Price bundling

- is when the firm offers a basic product, options and customer service for one total price. The entrepreneur will
combine product and service to the price set in the product.

15. Unbundled pricing

- is when the firm sells by individual components and allows customer to decide what to buy.

16. Geographic pricing

- is when the prices are set depending on the distance of the buyer to the seller.

The price of the product can also be its weakness . The entrepreneur should make sure that the product price is
affordable to is target market.

Marketers should use a good pricing strategy.

4. Promotion

- is any form of communication which is used to inform, persuade and remind people about an organization or
individuals of goods, services, image, ideas, community involvement or impact on the society.
- This is done to convince the customers to buy the product immediately.

Promotional Mix Tools

1. Advertising

- is a paid, non- personal communication regarding goods, services, organizations, people, places and ideas that is
transmitted through various media.
- The leading medium has been the newspaper, followed by television, radio, magazines/brochures, industry
publications, nowadays, social media.

2. Direct/ Personal selling

- Involves oral communication with one or more prospective buyers by paid representatives for purpose of
making sales.

3. Sales promotion

- is any activity that offers an incentive for a limited period to induce a desired response from target customers,
company salespeople or intermediaries.

Examples of Promotions
a. Advertising, (radio, tv, newspaper, social media)
b. Sales Promotion, (offer discounts/lower price/ buy 1 take 1)
c. Direct Marketing, (person-to-person)

5. People

- are your team, staff that makes it happen for you, your audience, your downlines/distributors and your
advertisers. 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.
- They are one of the most important elements of the marketing mix today. This is because of the remarkable rise
of the services industry. Products are being sold through retail channels today. If the retail channels are not
handled with the right people, the product will not be sold.

6. Packaging

- It is a silent hero/salesman in the marketing world. Packaging refers to the outside appearance of a product and
how it is presented to the customers. The best packaging should be attractive enough and cost efficient for the
customers.

Purpose of Packaging

1. To protect the product on its way to the customer or while in storage or in the warehouse.
2. To provide protection after the product is purchased.
3. It becomes part of the company’s trade marketing program
Desirable Packaging

1. It should be environment-friendly
2. It should be durable and maintain quality after using.
3. It must protect the design, color, taste and smell of the product.

Criteria for Choosing Packaging Materials

1. Protection- can a package give ample protection to the product?

2. Display Value- can it attract customers?
3. Cost- is it cost-efficient?
4. Convenience- is it easy to carry? is the packaging too heavy?
5. Size

Packaging Strategies
Family packaging

- involves making the packaging for family use.

Reuse packaging

- is designing and promoting package which can serve other purposes when contents are consumed.

Multiple Packaging

- is placing several units of a product in a single container

7. Positioning

- When a company presents a product or service in a way that is different from the competitors, they are said to
be “positioning” it.
- Positioning is for identification.
- It refers to a process used by marketers to create an image in the minds of a target market.
- Solid positioning will allow a single product to attract different customers for not the same reasons.

For example, two people are interested in buying a phone; one wants a phone that is cheaper in price and
fashionable while the other buyer is looking for a phone that is durable and has longer battery life and yet they
buy the same exact phone.

- Positioning is how the customers perceive your product.

Another example is selling your product in high price to position as with high quality, or in lower price
positioning as “affordable”.