LESSON 9 THE 7PS OF MARKETING MIX Flashcards
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.
MARKETING MIX
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.
Products
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.*
place
➢ 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
PRICE
WHAT ARE THE Variables that highly influence the setting of prices of goods or services:
- Availability of the competing products
- Cost of making the product
- Type of product
- Presence of substitute products
- Stages of the product in the market
- Demographic profile of the target consumers
➢When the supply of the
competing products is
high, the price of the
product is usually low.
Availability of the Competing Products
refers to the
amount spent by the
manufacturer in view of
the expected future
benefits.***
Cost of Making the Product
Enumerate the 3 elements of Cost
1.Direct materials
2.Direct labor
3.Factory overhead
-pertains to the materials that form part of the finished
product.
1.Direct materials
-refers to the wages paid to the workers who are directly involved in manufacturing the product
\2.Direct labor
-includes indirect materials and labor and other expenses like cost of light, water, fuel, or machinery maintenance.
3.Factory overhead
What are the Types of product
1.Industrial products
2.Consumer products
> are used as raw materials of other manufacturing
entities.
These products usually have higher prices compared
to consumer products.
Industrial products
> are used and consumed by individual consumers.
These products may be further classified into convenience product, shopping product, and highly-
priced product.
Consumer products
a threat to the primary
product. Substitute products
basically set the limit to the selling
price of the primary product.*
The presence of substitute products
Stages of the product in the market
1.Introductory stage
2.Growth stage
3.Maturity stage
4.Decline stage
The pricing strategies most often used by retail businesses include?
psychological pricing and discount pricing.
IT categorized as follows:
1.Promotional pricing
2.Odd or even pricing
3.Prestige pricing
Psychological pricing
to keep up with the
competition in the market,
recreate interest in the
product, and get rid of the
old stock.
Discount pricing
- 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.**
- PROMOTION
Promotion utilizes the most appropriate media to
reach the consumers. These include the following:
- Advertising
- Publicity
- Personal selling
- Sales Promotion
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
- Advertising
another way of
promoting the product or
service to the target
consumers through
media coverage.
- Publicity
Involves a salesperson
who has personal and
direct contact with the
prospective consumers.
Personal selling
