4QQE - ENTREPRENEURSHIP

• Marketing Mix


  A mode, mean, or tool used by the entrepreneur to position the product in the target market segment to deliver it to the consumers and convince them about the benefits that they will derive from buying the product
• Marketing Mix is a widely accepted strategic marketing tool
• Marketing Mix combines the original 4Ps with the additional 3Ps to formulate marketing tactics for a product or a service
• Product


  Refers to the tangible good or intangible service offered by the business to the target consumers
• The product is only produced once there is an existing need or want
• The product must satisfy the needs and wants of the consumer better than the other competing products
• Product Mix


  A concept where businesses make different products or services available to the consumers on top of the primary product
• Core Benefit of the Product

  Main Benefit
• Actual Benefit of the Product

  Physical Characteristics
• Augmented Benefit of the Product

  Additional benefits
• Place


  Refers to the location where the target consumers are
• Strategic location depends on the nature of the business and the primary target market
• Place can be physical location or cyber location
• Place aims to provide the customers with pleasant experience (presentable, appealing and catchy) in buying the product or availing of the service
• Price


  The peso value that the entrepreneur assigns to a certain product or service after considering its costs and other factors
• Variables that highly influence the setting of prices of goods and services


  • Availability of the competing products
  • Cost of making the product
  • Type of Product
  • Presence of substitute product
  • Stages of the product in the market
  • Demographic profile of the target consumers
• Cost


  Refers to the amount spent by the manufacturer in view of the expected future benefits
• Manufacturing costs


  • Direct materials
  • Direct labor
  • Factory overhead
• Direct materials


  Pertain to the materials that form part of the finished product
• Direct labor


  Wages paid to the workers who are directly involved in manufacturing the product
• Factory overhead


  Includes indirect materials and labor and other expenses like cost of utilities and machinery maintenance
• Industrial product


  Used as raw materials of other manufacturing entities
• Consumer product


  Used and consumed by individual consumers
• Industrial products usually have higher prices compared to consumer products
• Substitute product


  Basically set the limit to the selling price of the primary product
• Entrepreneurs must continuously monitor and study the entrepreneurial opportunities that may be provided by substitute products as these position themselves in the market
• Stages of the product in the market


  • Introductory Stage
  • Growth Stage
  • Maturity Stage
  • Decline Stage
• Pricing strategies most often used by retail businesses


  • Promotional pricing
  • Odd or even pricing
  • Prestige pricing
• Promotional pricing


  Where products are sold at a lower price in a limited temporary period
• Odd or even pricing

  Where products are sold at prices that end in odd numbers
• Prestige pricing


  Where products are purposely sold at higher price in order to create high or superior image
• Promotion


  Refers to the mode of conveying the presence and attributes of the product to the target consumer
• Promotion involves presenting the products or services to the public and how these can address the public's needs, wants, problems, or desires
• The primary target market should be identified
• Promotion aims to gain attention
• Promotional tools


  • Advertising
  • Publicity
  • Personal selling
  • Sales promotion
  • Direct marketing
• Advertising


  It is a paid promotional activity that influences the behavior of a customer
• Objectives of advertising


  • Informing, educating, and familiarizing the public with the offerings
  • Building a trustworthy image
  • Increasing sales
• Advertising mediums


  • Television
  • Radio
  • Internet
  • Mobile phones
  • Print
  • Out-of-home
• What advertising must do


  • Attract the attention of the consumers
  • Communicate the message of the product
  • Elicit the feeling or desire to buy the product
  • Identify benefits of the product
  • Convey message in plain and simple language
  • Appeal to consumers' understanding by being meaningful and believable
  • Distinguish the product from other similar products