Chapter 4: Developing The Marketing Mix

Chapter 4: Developing the
Marketing Mix
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Lesson 11: Definition of Product and Service
• Knowing the Target
• Define a product and differentiate products, services, and

experiences.
• Formulate viable business models for product concepts.
• Checking the Foundation
Answer the Preliminary Discussion on pages 130, 139, 149, and 159.
• Gaining Knowledge
Terms to Remember
• BRAND. This is a mark of distinction that usually comes in the form of

names or terms, signs or symbols, and other design elements. It is
not necessarily the business name.
• BRAND EQUITY. This refers to the value of the product.
• BUSINESS MODEL. This refers to the mode by which the product
concept seeks to make money so that it can have a sustainable
operation.
• BUSINESS PLAN. This serves as a road map for bringing the product
idea to life. It also specifies the details that would help to make the
selected business model work.
• DEPARTMENT OF TRADE AND INDUSTRY (DTI). This is the government
agency where new entities that are in the form of sole
proprietorship should register their business name.
Terms to Remember
• GOODS. These are tangible products that consumers can actually

observe with their senses.
• INTELLECTUAL PROPERTY OFFICE. This is a branch under DTI where
trade names are registered.
• REVENUE GENERATOR. These are business activities that bring
income to the company.
• SECURITIES AND EXCHANGE COMMISSION (SEC). This is the
government agency where new entities that are in the form of
partnership and corporation should register their business name.
• SERVICES. These are intangible offerings that are abstract in nature.
Its key characteristic is the act of delivery.
• SERVICE EXPERIENCE. This refers to customer engagement or quality
of interaction of a business.
How do you make something truly
marketable? (p. 131)
• Creating the Business Model

-Business models refer to the mode by which the product
concept seeks to make money so that it can have a
sustainable operation.
-Businesses do not need to be dependent on actual consumer
purchases for their business models. Some alternative forms of
revenue generation are: Advertising, Sponsorship, Donations,
Rent or lease, and subscription.
-The critical part of business modeling would be the balancing
act between the target number of consumers, the profit
margin goal per unit sold, and the acceptability of the
resulting price.
marketable?
• The Business Plan

-The Business Plan serves as a road map for bringing the
product idea to life, and it specifies the details that would help
to make the selected business model work.
-Parts: Statement of Opportunity, Environmental Analysis,
Market Estimates and Market Segments, Competitive Analysis,
Business Strategy, Risk Analysis, and Financial Forecast
marketable?
• Competitive Strategies
-How can I compete effectively in the market?
-Three generic competitive strategies: Least cost,
Differentiation, and Niche Strategies (Wright, 1986)
Goods vs. Services (p. 140)

Goods – refer to tangible products that consumers can
actually observe with their sense; have physical
manifestations and attributes.
Services – refer to intangible offerings that are abstract

in nature and cannot be observed with our senses. Its
key characteristic is the act of delivery itself.
Goods vs. Services (p. 140)

• Ownership
• Customer participation
• Product experience
• Variability in inputs and outputs
• Customer evaluation
• Time of service delivery
Types of Service Processes

• Services can be enacted through the use of tangible
objects, or it can be purely intangible.
• Services can also either be directed toward the
“processing” of people or services can be applied to
the processing of people’s possessions.
• Services can also be applied to the processing of
information.
Building Up the Service Experience

Since consumers will have difficulty in assessing the
technical quality of a service, good customer
engagement matters.
• Personnel Selection and Training
• User Interface
• Points of Contact
• Tangible Mementos
Branding
• Brand – a mark of distinction that can be sensed
usually in the form of names or terms, symbols, design
elements, or even a combination of these, and is
utilized for the purpose of identifying and distinguishing
the goods or services of one provider from another.
• Consistency is a significant factor in brand
management.
Functions of a Brand
• Identifies the product or service
• Communicates messages to the markets, and to the
public at large
• Functions as a legal property
Origins of Branding
• Ownership and belonging
• Distinguishing
• Identifying the source
Origins of Branding
Elements of the Brand

• Trade name
• Generic category
• Logo
• Tagline
• Visual cues
• Shapes
• Colors
• Sounds
• Scents
• Tastes
Elements of Logo Design

• Keep it simple
• Make it relevant
• Incorporate tradition
• Aim for distinction
• Commit to memory
• Think small
• Focus on one thing
Levels of Meaning
• Attributes
• Benefits
• Values
• Culture
• Personality
• User
Brand Equity
• Refers to the value of the brand.
• Intangible and near-speculative.
• Can be gauged by how much people are willing to
pay for it.
Brand Valuation
• Brand valuators can be a number of metrics that are
deemed important for gauging how much consumers
appreciate a brand.
• Marketers will have to construct their own brand asset
value by creating an index out of all these disparate
metrics.
Developing the Brand

Step 1. Develop the Brand Strategy
Step 2. Develop the Creative Theme
Step 3. Create the Name
Step 4. Test the Name
Step 5. Screen for Trademark Availability
• Doing It Myself
1. Formulate a plan on building up the service experience. Use the

service elements that are on page 143-144 of the book.
2. Establish your brand by applying the various elements on page
151-152.
3. Design a logo, following the tips given on page 153.
4. Give a name for your product by following the guidelines on
page 162-163.
5. Test the name by posting your brand name and your logo in the
forums section of the Principles of Marketing subject in the e-LMS.
Follow the guidelines on testing the name on page 163.
• Assignment
1. Exercises – page 137 (no. 3 only), and page 147 (nos. 1 and 2 only).
2. Application and Advancement – page 138 (nos. 2 and 3 only), and p
age 148.

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Chapter 4: Developing the

ALLPPT.com _ Free PowerPoint Templates, Diagrams and Charts

• Knowing the Target

• Define a product and differentiate products, services, and

• Checking the Foundation

• BRAND. This is a mark of distinction that usually comes in the form of

• GOODS. These are tangible products that consumers can actually

• Creating the Business Model

• The Business Plan

Goods vs. Services (p. 140)

Services – refer to intangible offerings that are abstract

Goods vs. Services (p. 140)

Types of Service Processes

Building Up the Service Experience

Elements of the Brand

Elements of Logo Design

Developing the Brand

1. Formulate a plan on building up the service experience. Use the

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