The-Marketing-Mix-7Ps 2.power point presentation

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1. The Marketing Mix (7P’s) in Relation to the Business Opportunity

2. Why should businesses revisit their products from time to time?

3. Introductory questions: Can you remember any impactful marketing concept by any business or brand? Have you ever purchased a product through any form of advertisement? Do you prefer shopping online, or would you go to a store instead?

4. Marketing mix A marketing mix is a special tool used in the implementation of any business, which is made up of seven distinct but interconnected variables. a set of controllable and connected variables that a company gathers to satisfy a customer better than its competitor.

5. The Traditional 4P’s and New 7P’s The original components of the marketing mix were four different yet interrelated variables. Such a framework was used for marketing decision-making of any form of business. The essential pillars of the traditional 4Ps are product , price , place , and promotion . In addressing the continuing concerns in the marketing industry, three other variables were added towards the creation of the current 7Ps: people , packaging , and positioning .

6. The Extended 7P’s

7. 1. Product

8. product refers to any goods or services that is produced to meet the consumers’ wants, tastes and preferences. A product refers to any item that is produced to satisfy the needs and demands of a certain group of people. It has a life cycle that revolves around its growth, maturity, and after-sales performance.

9. Essential questions in developing the right type of product What do the consumers want from the product? In what way will the consumers use the product? What additional features should the product have to address the needs of the consumers? What should be the name or brand of the product? How does the product differ from the products of the other competitors?

10. 2 classification of products Tangible Products (Goods) Intangible Products (Services)

11. Tangible products (goods) Those items that have physical presence. The benefits of these products can be evaluated based on the visual comparisons. One of the primary keys in marketing tangible products is providing the consumers with the benefits they are looking for. Selling tangible products allows businesses to present the product's physical attributes directly to their customers, an advantage when it comes to marketing and sales strategies as it helps customers in assessing the product quality before purchase.

12. intangible products (services) Intangible products are those items that have no physical presence and can only be felt indirectly. The most popular are usually products that exist digitally, such as licenses and software. Despite not being a physical product, intangibles are still extremely valuable, though their value is a bit more difficult to sell.

13. intangible products (services) Intangible product examples include, but are not limited to:  Education Data Software Insurance Maintenance and repair Consulting and advice Accounting Copyrights, trademarks, and patents

14. 2 types of products Consumer Product (B2C) - s old to individuals to satisfy personal or family needs Business Product (B2B) - sold to businesses to satisfy their needs or bought by a form to make into other products

15. Consumer goods vs. business goods Consumer Goods Business Goods The demand for consumer goods is a 'direct demand'. The demand for business goods is a 'derived demand'. It is derived from the demand for consumer goods, which are made using the business goods. The number of buyers is great. Business goods have only limited number of buyers. The buyers are found scattered in different parts of the country / world. The buyers are found to be concentrating in certain regions only. Each purchase will generally be of small value. Each purchase involves a very high amount (in money terms). Buying is much influenced by emotions. Buying cannot be influenced by emotions.

16. Consumer goods vs. business goods Consumer Goods Business Goods After-sale service is important in the case of consumer durables. After-sale service is of paramount importance in the case of all business goods. There are a number of middlemen in the market. The manufacturers of industrial goods supply directly to their customers. A buyer of consumer goods may not have thorough knowledge of the goods he buys and uses. A buyer of industrial goods must have complete knowledge of the goods he buys and uses. The reputation of the seller or manufacturer may not always be given importance in buying consumer goods. The reputation of the manufacturer is always important in buying industrial goods. Inducements to the buyers in the form of cash discounts, free gifts, etc. are made always by those marketing consumer goods. Such inducements may not be common in the marketing of industrial goods.

17. Stages in the Development of a Product Strategy Development Generation of Ideas Screening and Evaluation Business Analysis Product Development Market Testing Commercialization

18. 1. Strategy development Businesses often decide on effective strategies prior to the creation of a new product. 2. Generation of Ideas The ideas or concepts in developing a new product may come from various sources and not only from the upper management itself.

19. 3. Screening and Evaluation All ideas generated must go through proper evaluation wherein their feasibility is being determined. There are also ideas that do not resonate well with the core objectives of the business. 4. Business Analysis During this phase, the ideas thrown in become subject to a more rigorous analysis. Other factors, such as profit projections, risks involved, and consumer feedback, are likewise taken into consideration.

20. 5. Product Development It is during this stage that the product is introduced to the market. The production department will be tasked to produce and deliver the product to various intermediaries, and the marketing department will be tasked to take care of the branding of the product. 6. Market Testing Businesses adopt different approaches to testing the new product. In most situations, test marketing involves the introduction of the new product to a small market. If such launching were successful, then it would be introduced to larger market size.

21. 7. Commercialization If the outcome of the previous test marketing were successful, the business would introduce the product to a larger market, either locally or internationally.

22. 2. place

23. Introductory questions Where do you usually buy your essential needs (e.g., food, drinks, and other prime commodities)? Why do you think some people prefer buying goods from the wet market than from the supermarket? Do you often purchase goods from convenience stores? Why or why not?

24. place represents the location where the buyer and seller exchange goods and services. a location in any business process where the aspects of management, product storage, logistics, processing of orders, and inventory control are being made available 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.

25. Distribution channel A distribution channel contains a set of interdependent organizations that are involved in the process of making a product or service available to the end consumers.

26. Why do businesses give intermediaries or distribution channels the job of selling their products?

27. Types of Distribution Channels Direct distribution Indirect distribution Dual or Hybrid distribution Reverse channels

28. Direct distribution In this type of distribution channel, the manufacturer or producer directly distributes the product to the end consumer.

29. indirect distribution Any business using an indirect distribution channel will always employ selling through an intermediary. Generally, the business will sell its products to a wholesaler who further reaches out to a retailer to target more consumers.

30. Dual/hybrid distribution The dual distribution channel involves a combination of direct and indirect selling strategies. Businesses may opt to sell their products directly to the end consumers, and they may also reach out to several intermediaries at the same time.

31. Reverse channels The reverse channel has a different course—from the end consumer, next to the intermediary, down to the beneficiary or user. In this kind of distribution channel, the consumers will be using goods for recycling and repurposing. Ways Examples 1. Reuse containers, metallic equipment, drums, bottles 2. Recycle paper, plastics, cardboards, cartons, aluminum cans, empty aerosols 3. Refurbish computer parts and equipment, appliances, machines, electronics

32. What factors will you take into account in choosing the right distribution channel for your business?

33. Intermediary Intermediaries are the middlemen who play a vital role in the distribution of products to the market .

34. Types of Intermediary 1. Wholesaler A wholesaler is engaged in the buying and handling of goods in bulk or large quantities, which are subsequently sold to retailers in various areas. 2. Retailer Individuals engaged in retailing typically purchase goods at a low price, which are then resold to earn a profit. 3. Distributor The primary role of a distributor is to obtain products from the manufacturer itself and distribute it to various retailers and other endpoint locations. 4. Agent The core service of an agent typically revolves around bringing buyers and sellers together towards a negotiation process. In most cases, agents earn money through commissions and fees paid for their services.

35. Distribution Strategies 1. Intensive distribution In this kind of distribution strategy, products are distributed to as many retail outlets as possible. Low-priced products such as gums, candies, and other basic supplies are oftentimes distributed using this approach.

36. Distribution Strategies 2. Selective distribution Luxuries and other products that are upscale in nature are primarily distributed through selected channels.

37. Distribution Strategies 3. Exclusive distribution When products are being sold to only one specific retailer, the exclusive distribution strategy is being employed. With this strategy, the retailer has exclusive rights to sell the products of a business.

38. 6. packaging

39. How does product packaging play an essential role in the sales performance of any business?

40. How important is product packaging to you when you make purchase decisions? Do you easily get persuaded to buying products that have aesthetic packaging? What is your stand on the use of eco-friendly packaging materials?

41. packaging Packaging is a silent hero in the marketing world. It refers to the outside appearance of a product and how it is presented to the customers. Packaging can make or break the success and growth of a business, so it is important to innovate packaging that fulfills its essential functions. The best packaging should be attractive enough and cost efficient for the customers.

42. packaging A great deal of making purchase decisions is allotted to color testing and psychological manipulation. Some consumers are easily influenced by the external features of a product. This is precisely the role of packaging in marketing—it can be used as a tool to encourage or persuade consumers to purchase a product.

43. Five Basic Functions of Packaging Protection Containment Information Utility of use Promotion

44. 1. Protection One of the major functions of packaging is to provide for the effects of time and environment for the natural and manufactured products. The protection function can be divided into some classes : Natural deterioration Physical protection Safety Waste reduction

45. 2. containment This involves merging of unit loads for shipping. It starts with spots of adhesives on the individual shippers that stick them together, straps of steel and plastic, entire coverings of shrinkable or stretchable plastic films and paper or corrugated wraps that surround an entire pallet of product. Small objects are typically grouped together in one package for reasons of convenience and efficiency. For example, a single box of 100 pencils requires less physical handling than 100 single pencils.

46. 3. Information The packaging conveys necessary information to the consumers. The common information that packaging provides include general features of the product, ingredients, net weight of the contents, name and address of the manufacturers, usage directions, ingredients, and storage instructions.

47. 4. Utility of use The convenience packaging has been devised for foods, household chemicals, drugs, adhesives, paints, cosmetics, paper goods and a host of other products. This type of packaging includes dispensing devices, prepackaged hot metals, and disposable medical packaging.

48. 5. promotion Companies use attractive colors, logos, symbols and captions to promote the product that can influence customer purchase decision.

49. Packaging decision Packaging concept: This defines what the package should be or do for the particular product in terms of size, shape, materials, color, text, and brand mark and tamperproof ability. Engineering tests : This will ensure that the package stands up under normal conditions. Visual tests: This is to ensure that the script is legible and colors are harmonious Dealer tests: This is to ensure that the dealers find the packages attractive and easy to handle Consumer tests : This is to ensure favorable consumer response

50. 3. PRICE

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

52. PRICE In commerce, price is determined by what: A buyer is willing to pay A seller is willing to accept The competition is allowing to be charged

53. Pricing strategy helps the business owners define the particular price at which they can maximize profits on sales of their product or services. a wide range of factors should be considered when setting prices of the product or service.

54. Different pricing strategies Penetration Pricing Skimming Pricing Competition Pricing Bundle Pricing Product Line Pricing Premium Pricing Optional Pricing Cost-plus Pricing Psychological Pricing Value-based Pricing

55. 1. Penetration Pricing The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased 2. Skimming Pricing A company charges a higher price then slowly lowers the price to make the product available to a wider market because it has a considerable competitive advantage.

56. 3. competition Pricing Seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand. In reality, a firm has three options: to price lower, price the same or price higher than competitors 4. Bundle Pricing The act of placing several products or services together in a single package and selling for a lower price than would be charged if the items were sold separately.

57. 5. Product-line Pricing The practice of reviewing and setting prices for multiple products that a company offers in coordination with one another. Rather than looking at each product separately and setting its price, product-line pricing strategies aim to maximize the sales of different products by creating more complementary, rather than competitive, products. If you offer more than one product or service, consider the impact that one product's or service's price will have on the others.

58. 6. Premium Pricing Setting the price of a product higher than similar products. The goal is to create the perception that the products must have a higher value than competing products because the prices are higher. 7. Optional Pricing The company earns more through cross-selling products along with a basic core product. The main product does not have many features (and is priced low) which can be enhanced through optional or accessory products which are sold at premium by the same company.

59. 8. cost-plus Pricing Cost plus pricing involves adding a markup to the cost of goods and services to arrive at a selling price. Under this approach, you add together the direct material cost, direct labor cost, and overhead costs for a product, and add to it a markup percentage in order to derive the price of the product.

60. 8. cost-plus Pricing Example: An entrepreneur started her own clothing line. She needed to calculate the selling price for a long sleeve shirt. The following are the costs for producing the shirt: material and labor costs = Php 400 overhead costs = Php 200 The total cost adds up to Php 600. If the entrepreneur decides to have a mark-up amount of 50%, the selling price will be calculated through this formula: Selling price = 600 (1+50%) = 600 (1.50) Selling price = Php 900 Thus, the selling price for a long sleeve shirt should be Php900.

61. 9. Psychological Pricing Psychological pricing is the practice of setting prices slightly lower than rounded numbers, in the belief that customers do not round up these prices, and so will treat them as lower prices than they really are. This practice is based on the belief that customers tend to process a price from the left-most digit to the right, and so will tend to ignore the last few digits of a price.

62. 10. Value-based Pricing A price-setting strategy that centers on understanding what customers are willing to pay for a product or service based on its perceived benefits and value .

63. Categories of Pricing Issues Buyer-seller interactivity Price discrimination Price format Opportunistic pricing

64. Buyer-seller interactivity The amounts displayed in stores are not even the actual prices that buyers have to pay. Rather, prices have to be first negotiated during an interaction between the seller and the buyer. Price discrimination When a product is sold at different prices to different consumers, it is called price discrimination. From the perspective of any business, price discrimination may present several advantages, most especially profit maximization.

65. Price format This pricing issue involves how a price is expressed to the market. Businesses adopt the practice of pricing a product a cent or two below the round number ( Php 99.99 or Php 199.99), which has the psychological effect of lowering the leftmost digit. Opportunistic pricing Well-known businesses and some luxury brands may have the opportunity of charging a hefty price to their products. Opportunistic pricing is oftentimes used to drive competitors out of the industry based on efficiency.

66. 4. promotion

67. promotion refers to the complete set of activities, which communicate the product, brand or service to the user. The idea is to create an awareness, attract and induce the consumers to buy the product, in preference over others.

68. Objectives of Creating a Promotional Plan To create brand or product awareness To generate demand To differentiate a product from its competitors

69. Five Main Components of Promotional Mix Advertising Public Relations or PR Personal Selling Sales Promotion Direct Marketing

70. 1. advertising This promotional method is used to create awareness and deliver information to the target audience. Radio – gives the advantage of selecting the territory and audience to which the message is to be directed. It is also cheaper than TV advertising. Television – fast-developing medium of advertising and is getting increased popularity these days. It is more effective as compared to radio as it has the advantages of sound and sight. On account of pictorial presentation, it is more effective and impressive and leaves a lasting impression on the mind of the viewer.

71. 1. advertising Print - carry their messages entirely through the visual mode. These media consist of newspapers, magazines and direct mail. Electronic – You can also advertise electronically through your company website and provide important and pertinent information to clients and customers. You can protect some parts of your website through passwords and give access to member customers. You can also send advertisements via direct e-mail as part of your promotional strategy. Word of Mouth – It is important for every business, as each happy customer can steer dozens of new ones your way. And it's one of the most credible forms of advertising because a person puts their reputation on the line every time they make a recommendation and that person has nothing to gain but the appreciation of those who are listening.

72. 2. Public relations or pr In public relations, the article that features your company is not paid for. The reporter, whether broadcast or print, writes about or films your company as a result of information he or she received and researched.

73. 3. Personal selling Personal selling occurs when an individual salesperson sells a product, service or solution to a client. Salespeople match the benefits of their offering to the specific needs of a client. Today, personal selling involves the development of longstanding client relationships.

74. Five Stages of Personal Selling Process Prospecting Making first contact The sales call Objection handling Closing the sale

75. 4. Sales promotion Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service (i.e., initiatives that are not covered by the other elements of the marketing communications or promotions mix).

76. Sales promotion technique Free Gifts - There are many ways to utilize this particular sales promotion technique. A newly opened store, for example, may offer the first 10 customers free items worth 100 pesos. Free Sample - Providing free samples is a technique used to introduce new products to the marketplace. Samples give the consumer a chance to see how well they like a product or try something they otherwise would not normally buy. Free Trial/Taste - A free trial is a way for a consumer to try a new product while eliminating risk. It may be used when a product is unique to the marketplace. Customer Contests - Contests offer the customer a chance to win prizes like cash or store merchandise. Special Pricing - Special pricing is used to offer consumers a lower price for a period of time or to purchase in multiple quantities.

77. 5. Direct marketing Direct marketing is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman. It is a targeted form of marketing that presents information of potential interest to a consumer that has been determined to be a likely buyer. Forms of Direct Marketing Brochure Phone Calls Coupons Newsletters Catalogs Text Messages Emails Post Cards Fliers

78. Promotional Marketing in the Digital Era Social Media Marketing - Many businesses are utilizing different social media platforms to communicate their products and services to their target audience. Content Marketing - Content can be presented in various formats, including blogs, e-books, how- tos , online articles, forums, and so forth. This promotional strategy aims to attract new and potential customers by creating and sharing valuable information. Affiliate Marketing - Affiliate marketing takes into account the presence of third parties who are responsible for giving commissions or rewards to their affiliates. Email Marketing - Email marketing is a relatively low-cost promotional strategy that aims to build brand and customer loyalty. Search Engine Optimization (SEO) - Search engine optimization (SEO) is an umbrella term for the different methods used in increasing the visibility of a website or blog online. It considers different kinds of search, including image search, news search, and video search.

79. 5 . people

80. people They regarded as the primary key toward a successful implementation of marketing strategies of any business. They play a vital role in service delivery as well as in customer relationship retention. These people are relied on by the business to design, develop, manufacture, and produce products to the end consumers. The people rendering the service must be competent and skilled enough so that that the clients will patronize your service. The marketing efforts of people are to create customer awareness, to arouse customer interest, to educate customers, to close the sale and to deliver the product.

81. Recruitment Methods 82 Internal recruitment Internal recruitment is the process of filling vacant employment positions by the employees who are already working within the business premises.

82. Recruitment Methods 83 A. Promotions It aims to shift any employee from a lower position to a higher one with more responsibilities attached, remuneration, and ranking privilege.

83. Recruitment Methods 84 B. Transfers It involves the shifting of an employee from one department to another, depending on the qualifications of the position involved.

84. Recruitment Methods 85 C. Employee Referrals With this approach, current employees may refer people who they think are suitable or fit for the job. This is adopted by most businesses, for it saves cost and time compared to hiring people from various external sources.

85. Recruitment Methods 86 2. External Recruitment This type of recruitment refers to the hiring of employees outside the business. Applicants seeking opportunities have no connection with the internal affairs of the business.

86. Recruitment Methods 87 A. Employment Agencies Employment agencies are typically run by public, private, and government sectors. These sectors maintain a database where vital information of qualified candidates are stored and kept.

87. Recruitment Methods 88 B. Advertisements Recruiting through advertisements is very popular and much preferred by a lot of employers. Job vacancies are thoroughly described and announced through different print and electronic media.

88. Recruitment Methods 89 C. Walk-ins This direct form of external recruitment is done when prospective candidates are invited to apply for any job vacancy. In this case, a definite date, time, and venue of the interview are given to the candidates without the need to submit their applications in advance.

89. Motivated Workforce 90 Motivation pertains to a person’s direction to behave or act in life. In the entrepreneurial aspect, managing motivation is a critical aspect of the success of any business. Employers must motivate their employees by setting an example and identifying what the employees really desire.

90. Motivated Workforce 91 Acknowledge any employee’s achievement. Every individual wants to be recognized for something that he or she has remarkably done or made. A simple act of acknowledgment from the higher-ups will mean a lot to any employee.

91. Motivated Workforce 92 Offer employee rewards. Always remember that employees will stay in business if they have a reason to. Starting an incentive program will keep them motivated and will help them stay focused.

92. Proper Customer Service 93 It must be remembered that a great business is one that provides excellent customer service. To be able to give this kind of service, a group of high-caliber employees must be present to answer or resolve the queries of the customers and to make sure that they are getting their money's worth.

93. 5 . positioning

94. 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 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.

95. three basic concepts for positioning Functional Positions deal with solving a problem, providing benefits and getting a favorable perception from investors, stockholders and consumers. Symbolic Positions deal with self-image enhancement, ego identification, belongingness, social meaningfulness and affective fulfilment Experiential Positions deal with providing sensory or cognitive stimulation.

96. Steps of the positioning process Confirm your understanding of market dynamics Identify your competitive advantages Choose competitive advantages that define your market “niche” Define your positioning strategy Communicate and deliver on the positioning strategy

97. Four Elements of Product Positioning Vision and mission Product category Customer pain points Product differentiation

98. Product Positioning Statement A statement that is strategically used by businesses to instill into the minds of the target market a positive image of their products and services. A well-crafted product positioning statement must be able to describe the intended audience of a product and the crucial reasons why customers should choose it over all others. It is a statement that makes the product different from its competitors.