entrepreneurship

7 P’s OF MARKETING AND BRANDING

Marketing Mix
o is a business mechanism used for effective
marketing of the products.
o is a set of controllable and connected variables that
a company gathers to satisfy a customer better than
its competitor.
o 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.

2. PLACE
o Place represents the location where the buyer and
seller exchange goods or services. 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.

It is one thing having a great product, sold at an attractive

1. PRODUCT price. But what if:

o Product refers to any goods or services that is o Customers are not near a retailer that is selling the
produced to meet the consumers wants, tastes and product?
preferences. o A competing product is stocked by a much wider
o Examples of goods include tires, MP3 players, range of outlets? A competitor is winning because it
clothing and etc. Goods can be categorized into has a team of trained distributors or sales agents
business goods or consumer goods. who are out there meeting customers and closing
the sale?
Examples of services include hair salons and accounting
firms. Services can be divided into: Place matters for a business of any size. It is a crucial part of
the marketing mix. The main function of a distribution
a. consumer services, such as hair styling or channel is to provide a link between production and
b. professional services, such as engineering and consumption.
accounting
Channel 1 contains two stages between producer and
consumer - a wholesaler and a retailer. A wholesaler
typically buys and stores large quantities of several
producers' goods and then breaks into bulk deliveries to
supply retailers with smaller quantities. For small retailers
with limited order quantities, the use of wholesalers makes
economic sense.

Channel 2 contains one intermediary. In consumer markets,

this is typically a retailer. A retailer is a company that buys
products from a manufacturer or wholesaler and sells them
to end users or customers. In a sense, a retailer is an
intermediary or middleman that customers use to get
products from the manufacturers.

Channel 3 is called a "direct-marketing" channel, since it has

no intermediary levels. In this case the manufacturer sells
directly to customers.

3. PRICE
o price is the value of money in exchange for a
product or service. Generally speaking, the price is
the amount or value that a customer gives up to
enjoy the benefits of having or using a product or
service. Thus, customers exchange a certain value
for having or using the product - a value we call
price.

Thus, customers exchange a certain value for having or

using the product - a value we call price.

In commerce, price is determined by what

1. a buyer is willing to pay. 4. PROMOTION

2. a seller is willing to accept, and
3. the competition is allowing to be charged. o Promotion refers to the complete set of activities,
which communicate the product, brand or service to
o With product, promotion, and place of marketing the user. The idea is to create an awareness, attract
mix, it is one of the business variables over which and induce the consumers to buy the product, in
organizations can exercise some degree of control. preference over others.
o One example of a pricing strategy is the penetration
Promotional Mix -are the most common medium in promoting
pricing.
a product.
o It is when the price charged for products and
services is set artificially low in order to gain market
share. Once this is attained, the price can be higher
than before.
o For example, if you are going to open a Beauty
Salon, you need to set your prices lower than those
of your competitors so that you can penetrate the
market. If you already have a good number of
market share then you can slowly increase your
price.
1. ADVERTISING
o There are several factors that affect a small
business' revenue potential. One of the most
important is the pricing strategy utilized by you as
the owner of the business.
o A right pricing strategy helps you define the
particular price at which you can maximize profits
on sales of your product or service. You need to
consider a wide range of factors when setting prices
of your offerings. The different pricing strategies
with its definition can be found in the table on the 2. PUBLIC RELATIONS OR PR
next slide.
o 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.
 o Many people use the term PR and advertising 5. DIRECT MARKETING
interchangeably, PR involves sharing information
with the public using platforms that do not require a o Direct marketing is a promotional method that
payment, such as social media or through press involves presenting information about your
releases shared with magazines and newspapers. company, product, or service to your target
PR professionals package information and customer without the use of an advertising
disseminate it in the hopes that it will be organically middleman. It is a targeted form of marketing that
shared. The goal of public relations is to shape. presents information of potential interest to a
public perception of a business, presenting a consumer that has been determined to be a likely
positive image through various strategies to its buyer.
various constituents.
Forms of Direct Marketing
3. PERSONAL SELLING
Brochure Catalogs Fliers Newsletters Post Cards Coupons
o Personal selling involves a selling process that is Email Phone calls Text messages
summarized in the following Five Stage Personal
Selling Process. The five stages are:
o Prospecting 5. PEOPLE
o Making first contact
o The sales call o People are the ultimate strategy. They sell and push
o Objection handling the product. People are one of the most important
o Closing the sale elements of the marketing mix today. This is
because of the remarkable rise of the services
4. SALES PROMOTIONS industry.
o Your team, the staff that makes it happen for you,
Sales promotion is any initiative undertaken by an your audience, and your advertisers are the people
organization to promote an increase in sales, usage or trial of in marketing. This consist of each person who is
a product or service (i.e., initiatives that are not covered by involved in the product or service whether directly or
the other elements of the marketing communications or indirectly.
promotions mix).
Products are being sold through retail channels today. If the
Sales Promotion Technique retail channels are not handled with the right people, the
product will not be sold. Services must be first class
1. Free Gifts nowadays. The people rendering the service must be
2. Free Samples competent and skilled enough so that that the clients will
3. Free Trial patronize your service. The marketing efforts of people are to
4. Customer Contests create customer awareness, to arouse customer interest, to
5. Special Pricing educate customers, to close the sale and to deliver the
Sales Promotion Technique product.

• Free Gifts Therefore, the right people are essential in marketing mix in
the current marketing scenario.
There are many ways to utilize this particular sales
promotion technique. A newly opened store, for example, The Marketing Efforts of people are organized at four level:
may offer the first 10 customers free items worth 100 pesos. 1. To create customer awareness
• Free Samples 2. To arouse customer
3. To educate customers as they evaluate their buying
Providing free samples is a technique used to introduce new choices
products to the marketplace. Samples give the consumer a 4. To close the sale and deliver the products.
chance to see how well they like a product or try something
they otherwise would not normally buy. Closing the sale demands that the products are:

• Free Trial a. Available

b. Adequate
A free trial is a way for a consumer to try a new product while c. Acceptable
eliminating risk. It may be used when a product is unique to d. Affordable
the marketplace.
6. PACKAGING
• Customer Contests
o Packaging is a silent hero in the marketing refers to
Contests offer the customer a chance to win prizes like cash
the outside world. Packaging refers to appearance
or store merchandise.
of a product and how it is presented to the
• Special Pricing customers. The best packaging should be attractive
enough and cost efficient for the customers.
Special pricing is used to offer consumers a lower price for a Packaging is highly functional. It is for protection,
period of time or to purchase in multiple quantities. For containment, information, utility of use and
example, a retailer may offer a product that normally costs promotion.
35 pesos at a price of 3-for-100-pesos during the
promotional period. Five Basic Functions of Packaging
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.

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
Developing a Brand Name
product. o After studying and understanding the framework of
3. Information: The packaging conveys necessary the Marketing Mix which is the 7 P's of Marketing,
information to the consumers. The common information that you are now ready to develop your Brand Name.
packaging provides include general features of the product, Brand Name is a name, symbol, or other feature that
ingredients, net weight of the contents, name and address of distinguishes a seller's goods or services in the marketplace.
the manufacturers, maximum retail price (MRP). Your brand is one of your greatest assets because your
4. Utility of use: The convenience packaging has been brand is your customers' over-all experience of your
devised for foods, household chemicals, drugs, adhesives, business.
paints, cosmetics, paper goods and a host of other products. Brand strategy is a long-term design for the development of
This type of packaging includes dispensing devices, a popular brand in order to achieve the goals and objectives.
prepackaged hot metals, and disposable medical packaging. A well-defined brand strategy shakes all parts of a business
5. Promotion: Companies use attractive colors, logos, and is directly linked to customer needs, wants, emotions,
symbols and captions to promote the product that can and competitive surroundings. Experts believe that a good
influence customer purchase decision. brand can result in better loyalty for its customers, a better
corporate image and a more relevant identity.
Packaging Decisions:
Branding is a powerful and sustainable high-level marketing
i. Packaging concept: This defines what the package should strategy used to create or influence a brand. Branding as a
be or do for the particular product in terms of size, shape, strategy to distinguish products and companies and to build
materials, color, text, and brand mark and tamperproof ability economic value to both customers and to brand owners, is
described by Pickton and Broderick in 2001.
ii. Engineering tests: This will ensure that the package stands
up under normal conditions Commonly Used Branding Strategies
iii. Visual tests: This is to ensure that the script is legible and 1) Purpose "Every brand makes a promise. But in a market
colors are harmonious in which customer confidence is little and budgetary
iv. Dealer tests: This is to ensure that the dealers find the observance is great, it's not just making a promise that
packages attractive and easy to handle separates one brand from another, but having a significant
purpose." (Allen Adamson).
v. Consumer tests: This is to ensure favorable consumer
response Purpose can be viewed in two ways:

a. Functional. This way focuses on the assessments of

7. POSITIONING success in terms of fast and profitable reasons. For
example, the purpose of the business is to make
o When a company presents a product or service in a
money.
way that is different from the competitors, they are
said to be "positioning" it. Positioning refers to a b. Intentional. This way focuses on fulfillment as it
process used by marketers to create an image in relates to the capability to generate money and do well
the minds of a target market. in the world.
There are three basic concepts for positioning. 2) Consistency The significance of consistency is to avoid
things that don't relate to or improve your brand. Consistency
1. Functional Positions deal with solving a problem, providing
aids to brand recognition, which fuels customer loyalty.
benefits and getting a favorable perception from investors,
stockholders and consumers. 3) Emotion There should be an emotional voice, whispering
"Buy me". This means you allow the customers to have the
2. Symbolic Positions deal with self-image enhancement,
chance to feel that they are part of your brand. You should
ego identification, belongingness, social meaningfulness and
find ways to connect more deeply and emotionally with your
affective fulfilment
customers. Make them feel part of the family and use
3. Experiential Positions deal with providing sensory or emotion to build relationships and promote brand loyalty
cognitive stimulation.
4) Flexibility Marketers should remain flexible too in this
rapidly changing world. Consistency targets at setting the
standard for your brand, flexibility allows you to adjust and
differentiate your approach from your competition.
5) Employee Involvement It is equally important for your
employees to be well versed in how they communicate with
customers and represent the brand of your product.

6) Loyalty It is an important part of brand strategy. At the end

of the day, the emphasis on a positive relationship between
you and your existing customers sets the tone for what
potential customers can expect from doing business with
you.

7) Competitive Awareness Do not be frightened of

competition. Take it as a challenge to improve your branding
strategy and craft a better value in your brand