LESSON 9 THE 7PS OF MARKETING MIX

Question 1

Simply refers to a mode, means, or tool used
by the entrepreneur to position the product
in the target market segment to efficiently
and effectively deliver it to the consumers
and to convince them about the benefits that
they will derive from buying the product.

Answer 1

MARKETING MIX

Question 2

Refers to the tangible good or
intangible service offered by the
business to the target consumers.
- must satisfy the
needs of the consumers better
than the other competing
products.

Answer 2

Products

Question 3

refers to the place where
the target consumers are.
The entrepreneur must
establish his/her business
or product in the most
strategic place or
location.*

Answer 3

place

Question 4

➢ Refers to the monetary value of the product.**
The concept of pricing relative to the marketing
mix can be viewed from two opposing
perspectives:
1. The perspective of the entrepreneur who
produces the product
2. The perspective of the consumers who
ultimately buy the product

Answer 4

PRICE

Question 5

WHAT ARE THE Variables that highly influence the setting of prices of goods or services:

Answer 5

1. Availability of the competing products
2. Cost of making the product
3. Type of product
4. Presence of substitute products
5. Stages of the product in the market
6. Demographic profile of the target consumers

Question 6

➢When the supply of the
competing products is
high, the price of the
product is usually low.

Answer 6

Availability of the Competing Products

Question 7

refers to the
amount spent by the
manufacturer in view of
the expected future
benefits.***

Answer 7

Cost of Making the Product

Question 8

Enumerate the 3 elements of Cost

Answer 8

1.Direct materials

2.Direct labor

3.Factory overhead

Question 9

-pertains to the materials that form part of the finished
product.

Answer 9

1.Direct materials

Question 10

-refers to the wages paid to the workers who are directly involved in manufacturing the product

Answer 10

\2.Direct labor

Question 11

-includes indirect materials and labor and other expenses like cost of light, water, fuel, or machinery maintenance.

Answer 11

3.Factory overhead

Question 12

What are the Types of product

Answer 12

1.Industrial products
2.Consumer products

Question 13

> are used as raw materials of other manufacturing
entities.
These products usually have higher prices compared
to consumer products.

Answer 13

Industrial products

Question 14

> are used and consumed by individual consumers.
These products may be further classified into convenience product, shopping product, and highly-
priced product.

Answer 14

Consumer products

Question 15

a threat to the primary
product. Substitute products
basically set the limit to the selling
price of the primary product.*

Answer 15

The presence of substitute products

Question 16

Stages of the product in the market

Answer 16

1.Introductory stage
2.Growth stage
3.Maturity stage
4.Decline stage

Question 17

The pricing strategies most often used by retail businesses include?

Answer 17

psychological pricing and discount pricing.

Question 18

IT categorized as follows:
1.Promotional pricing
2.Odd or even pricing
3.Prestige pricing

Answer 18

Psychological pricing

Question 19

to keep up with the
competition in the market,
recreate interest in the
product, and get rid of the
old stock.

Answer 19

Discount pricing

Question 20

• Refers to the mode of conveying the
  presence and attributes of the product
  to the target consumers.
• The business communicates to the
  target consumers the pertinent
  information about the product
  including its benefits, price, and
  position in the market.**

Answer 20

4. PROMOTION

Question 21

Promotion utilizes the most appropriate media to
reach the consumers. These include the following:

Answer 21

1. Advertising
2. Publicity
3. Personal selling
4. Sales Promotion

Question 22

The most common medium of promoting
a product or service is through advertising
in the following forms:
a. Television or radio commercials
b. Print advertisement like those on
billboards, magazines, telephone
directories, or newspapers.
c. Online advertising
d. Packaging ads

Answer 22

1. Advertising

Question 23

another way of
promoting the product or
service to the target
consumers through
media coverage.

Answer 23

2. Publicity

Question 24

Involves a salesperson
who has personal and
direct contact with the
prospective consumers.

Answer 24

Personal selling

Question 25

Different Types of Sales Promotion:

Answer 25

1.Discounts
2. Coupons
3. Cash rewards
4. Gift certificates

Question 26

➢Allow the consumers to buy the product or avail of the service at a price lower than the regular selling price.

Answer 26

Discounts

Question 27

➢Form of incentive to the customers for patronizing a store.

Answer 27

Coupons

Question 28

➢As a means of promoting the product helps the business in
gaining the loyalty of the customers.

Answer 28

Cash rewards

Question 29

➢Incentive to the customers who have completed the
required accumulated amount of purchases.

Answer 29

Gift certificates

Question 30

*Refers to individual
employees or workers who
are directly involved in the
production, marketing, and
sale of the product or
services. Hence, the
entrepreneur must be sure to
hire the right person for the
position.

Answer 30

PEOPLE

Question 31

TRUE OR FALSE

*GREAT EMPLOYEESThe term right in this context simply means that the educational qualifications and
expertise of the person to occupy the
position match the specifications and
requirements of the job.

Answer 31

TRUE

Question 32

*Refers to the process of putting
the product in a package or
container.
*It includes the kind of material
used for the wrapper or
container and the label and
product information printed on
the package.

Answer 32

PACKAGING

Question 33

*Refers to the place occupied
by the product in the minds of
the consumers.
*Refers to the process of
establishing the image or
identity of a brand of
product so that consumers
perceive it in a certain way.

Answer 33

POSITIONING

Question 34

*Refers to a product
status in relation to
the wider market,
particularly how it
lines up against
competitors.

Answer 34

POSITIONING

Question 35

Based on the customer-oriented perspective, the seven Ps may be Represented in a customer-driven strategy as follows:

Answer 35

1.Customer satisfaction for product
2.Customer convenience for place
3.Customer cost lowered
4.Customer information for promotion
5.Customer quality assurance for people
6.Customer safety for packaging
7.Customer decision for positioning