ENTREPRENEURSHIP

• 7 P's of Marketing Mix: Product, Place, Price, Promotion, People, Packaging, and Positioning.
• 1. Product - refers to any goods or services that are produced to meet the consumers' wants, tastes, and preferences.

  • Goods - Business Goods & Consumer Goods
• • Consumer Goods : Direct Demand, number of buyers is great, buyers found in different parts of the world, each purchase will be small value, after-sale is important in case of consumer durables, number of middlemen, buyers may not have the knowledge, reputation of seller not given importance, indocument to the buyers in form of discounts, market is affected by fashion and style changes.
• • Business Good: derived demand, limited numbers of buyers, buyers are found in certain regions only, each purchase involves a very high amount, buying not influenced by emotion, after-sale service in case of all business goods, manufacturer supply directly to their customers, buyers must have complete knowledge, reputation of manufacturer is always important, inducement may not be common, industrial good affected by technological changes.
• 2) Place - the location where the buyer and seller exchange goods or services, also called 'distribution channel'. It includes Physical Store and Virtual Store.
• STAGES OF DISTRIBUTION CHANNEL

  • Channel 1 - producer and consumer - a wholesaler and a retailer. A wholesaler buys and stores large quantities of producers' goods and breaks into bulk deliveries to supply retailers with smaller quantities.
• STAGES OF DISTRIBUTION CHANNEL

  • Channel 2 - one intermediary. This is retailer, buys a product from a manufacturer and sells them to customers.
• STAGES OF DISTRIBUTION CHANNEL

  • Channel 3 - called direct marketing channel, since it has no intermediary levels. The manufacturer sells directly to customers.
• 3) Price - is the value of money in exchange for a product or service
• Price is determined by

  1. by what a buyer is willing to pay

  2. a seller is willing to accept, and
  3. the competition is allowing to be changed.
• THE DIFFERENT PRICING STRATEGIES AND ITS DEFINITION

  1. Penetration Pricing - Price changed in order to gain market share. The price is increased.
• THE DIFFERENT PRICING STRATEGIES AND ITS DEFINITION

  2. Skimming Pricing - Charges a higher price then slowly lowers the price to make the product available.
• THE DIFFERENT PRICING STRATEGIES AND ITS DEFINITION

  3. Competition Pricing - seller uses prices of competing products as a benchmark instead of considering own costs or the customer in demand.
• THE DIFFERENT PRICING STRATEGIES AND ITS DEFINITION

  4. Product Line Pricing - aim to maximize the sales of different products by creating more complementary, rather than competitive, products.
• THE DIFFERENT PRICING STRATEGIES AND ITS DEFINITION

  5. Bundle Pricing - act of placing several products together in a single package for a lower price.
• THE DIFFERENT PRICING STRATEGIES AND ITS DEFINITION

  6. Premium Pricing - create the perception that the products must have a higher value than competing products because the prices are higher.
• THE DIFFERENT PRICING STRATEGIES AND ITS DEFINITION

  7. Psychological Pricing - setting prices slightly lower than rounded numbers, in the belief that customer do not round up these prices, so will treat them as lower prices than they really are.
• THE DIFFERENT PRICING STRATEGIES AND ITS DEFINITION

  8. Optional Pricing - main product does not have features which can be enhanced through accessory products and sold premium by the same company.
• THE DIFFERENT PRICING STRATEGIES AND ITS DEFINITION

  9. Cost Plus Pricing - you add together the direct 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.
• THE DIFFERENT PRICING STRATEGIES AND ITS DEFINITION

  10. Cost Based Pricing - a fixed sum of the total cost is added to the cost of the product to arrive at its selling price.
• THE DIFFERENT PRICING STRATEGIES AND ITS DEFINITION

  11. Value Based Pricing - prices are set primarily on consumers' perceived value of the product or service.
• 4) Promotion - refers to the complete set of activities, which communicate the product, brand, or service to the user. Create awareness, attract and induce consumers to buy the product.
• PROMOTIONAL MIX

  1. Advertising

  • Radio
  • Television
  • Print
  • Electronic
  • Word of Mouth
  • Generic
• PROMOTIONAL MIX

  2. Public Relations or PR - the article that features your company is not paid. Involves sharing information with the public using platforms that do not require a payment, such as social media or through press releases shared with magazines and newspaper.
• PROMOTIONAL MIX

  3. Personal Selling - occurs when an individual salesperson sells a product, service or solution to a client.
• FIVE STAGES PERSONAL SELLING PROCESS

  • Prospecting
  • Making first contact
  • The sales call
  • Objection handling
  • Closing the sale
• PROMOTIONAL MIX

  4. Sales Promotions - initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service.
• SALES PROMOTION TECHNIQUE

  • Free Gifts
  • Free Samples
  • Free Trial
  • Customers Contests
  • Special Pricing
• PROMOTIONAL MIX

  5. Direct Marketing - involves presenting information about your company, product, or service to your target consumers without the use of an advertising middleman.
• 5. People - consist of each person who is involved in the product whether directly or indirectly. Essential in marketing mix in the current marketing product.
• 6. Packaging - refers to the outside appearance of a product and how is presented to the customers.
• FIVE BASIC FUNCTIONS OF PACKAGING

  1. Protection

  • Natural deterioration - interaction with water, gases, bacteria, yeast, heat, cold, ...
  • Physical protection - reducing damage
  • Safety - protect from harm
  • Waste reduction - reduce the amount of waste in case of food distribution.
• FIVE BASIC FUNCTIONS OF PACKAGING

  2. Containment - involves merging units of loads for shipping.
• FIVE BASIC FUNCTIONS OF PACKAGING

  3. Information - the package conveys information to the customers. General features of the product, ingredients, net weight, name, address of the manufacturer, maximum retail price.
• FIVE BASIC FUNCTIONS OF PACKAGING

  4. Utility of use - devised for foods. household chemicals, drugs, adhesives, paints, cosmetics.
• FIVE BASIC FUNCTIONS OF PACKAGING

  5. Promotion - use attractive colors, logos, symbols, and caption to promote the product.
• PACKAGING DECISIONS:

  1. Packaging concept - defines the package
  2. Engineering tests - ensure the package stands up in normal conditions
  3. Visual tests - ensure the script is legible and colors are harmonious
  4. Dealer tests - ensure the dealers find the package attractive
  5. Consumer tests - ensure favorable consumer response


  .
• 7. Positioning - refers to a process used by marketers to create an image in the mind of a target market.
• STEPS OF THE POSITIONING PROCESS

  Step 1 - Confirm your understanding of market dynamics
• STEPS OF THE POSITIONING PROCESS

  Step 2 - Identify your competitive advantages