Lecture Notes 5

7P’s in Marketing and Branding

Lesson Objectives:

1. describe the Concept of Marketing Mix;

2. identify the seven P’s in the Marketing Mix;
3. appreciate the importance of Marketing Mix and Branding; and
4. developed a Brand Name.

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

Opportunity

The three (3) ways of collecting data are Survey, Interview, and Focus Group
Discussion (FGD). This will help entrepreneurs in gathering information about their
target market. But, your entrepreneurial work, however, does not simply end there. You
must design a certain marketing program or strategy that will convey the value of your
product to the target customers. In the parlance of entrepreneurship, this program is
theoretically called marketing mix.

To get to the point, marketing mix is a business mechanism used for effective marketing
of the products. There is no hesitation that anyone would benefit from a powerful 7Ps.
Marketing Mix is a set of controllable and connected variables that a company gathers
to satisfy a customer better than its competitor.

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.
The 7 P’s of Marketing Mix
There are several important frameworks which you can utilize for the purpose of
marketing your product and services. A very crucial structure among these is the “7 P’s
of Marketing. The framework of “7 Ps of marketing” includes product, place, price,
promotion people, packaging and positioning. Realizing these P’s in the most ideal
manner can turn out to be very profitable, however, you should totally see each
description of the 7 P’s first.

1. PRODUCT

The first P in the Marketing Mix is the Product. Marketing strategy typically starts with
the product. Marketers can’t plan a distribution system or set a price if they don’t know
exactly what the product will be offered to the market.

Product refers to any goods or services that is produced to meet the consumers’
wants, tastes and preferences. Examples of goods include tires, MP3 players, clothing
and etc. Goods can be categorized into business goods or consumer goods. A buyer of
consumer goods may not have thorough knowledge of the goods he buys and uses.

Examples of services include hair salons and accounting firms. Services can be
divided into consumer services, such as hair styling or professional services, such as
engineering and accounting.
The two (2) types of products
2. PLACE
Place is the second P in the Marketing Mix. 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 price. But what if:

• Customers are not near a retailer that is selling the product?

• A competing product is stocked by a much wider range of outlets?
• A competitor is winning because it has a team of trained distributors or sales agents
who are out there meeting customers and closing the sale?

Place matters for a business of any size. It is a crucial part of the marketing mix. The
main function of a distribution channel is to provide a link between production and
consumption.
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

The third P in the Marketing Mix is price. The price is a serious component of the
marketing mix. What do you think is the meaning of Price?

In the narrowest sense, 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, customersexchange 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, (2) a
seller is willing to accept, and (3) the competition is allowing to be charged. With
product, promotion, and place of marketing mix, it is one of the business variables over
which organizations can exercise some degree of control. One example of a pricing
strategy is the penetration pricing. 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. For example, if you are going
to open a Beauty Salon, you need to set your prices lower than those of your ompetitors
so that you can penetrate the market. If you already have a good number of market
share then you can slowly increase your price.
4. PROMOTION
Promotion is the fourth P in the Marketing Mix. 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. The following are the most common medium in promoting a
product and this is called promotional mix.
PROMOTIONAL MIX

1.ADVERTISING
• Radio
Advertising by means of 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
This is the latest and the 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.

• Print
The print media 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
Word-of-mouth advertising 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.

•Generic
The promotion of a particular commodity is without reference to a specific
producer, brand name or manufacturer. Producers join together to expand total
demand for the commodity, thereby helping their own sales. These activities are often
self-funded through assessments on marketing called check-off programs.

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.

Many people use the term PR and advertising interchangeably, PR 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 newspapers.

PR professionals package information and disseminate it in the hopes that it will be

organically shared. The goal of public relations is to shape public perception of a
business, presenting a positive image through various strategies to its various
constituents.

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.

Personal selling involves a selling process that is summarized in the following

Five Stage Personal Selling Process. The five stages are:
• Prospecting
• Making first contact
• The sales call
• Objection handling
• Closing the sale

4. SALES PROMOTIONS

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).

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 Samples
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
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. For example, a retailer may offer a product that
normally costs 35 pesos at a price of 3-for-100-pesos during the promotional period.

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
Catalogs
Fliers
Newsletters
Post cards
Coupons
Email
Phone calls
Text messages
5. PEOPLE

The fifth P in the Marketing mix is People. Your team, the staff that makes it happen for
you, your audience, and your advertisers are the people in marketing. This consist of
each person who is involved in the product or service whether directly or indirectly.

People are the ultimate marketing strategy. They sell and push the product. People are
one of the most important elements of the marketing mix today. This is because of the
remarkable rise of the services industry. Products are being sold through retail channels
today. If the retail channels are not handled with the right people, the product will not be
sold.

Services must be first class nowadays. 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. Therefore,
the right people are essential in marketing mix in the current marketing scenario.

6. PACKAGING

Packaging is the sixth P in the Marketing Mix. Packaging is a silent hero in the
marketing world. Packaging refers to the outside appearance of a product and how it
is presented to the customers. The best packaging should be attractive enough and
cost efficient for the customers. Packaging is highly functional. It is for protection,
containment, information, utility of use and promotion.
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.
A. Natural deterioration:
It is caused by the interaction of products with water, gases and fumes,
microbiologic
organisms like bacteria, yeasts and molds, heat, cold, dryness, contaminants and
insects and rodents.
B. Physical protection:
The packaging is also used for physical protection, which include improving
shock
protection, internal product protection and reducing shock damage caused from
vibration, snagging, friction and impact.
C. Safety:
A special kind of protective packaging is required for products that are deemed
harmful
to those who transport them or use them. These products include extremely
inflammable gas and liquid, radioactive elements, toxic materials etc. The
packaging
should also be done so that children could not easily use or dispose them.
D. Waste reduction:
Packaging also serves to reduce the amount of waste especially in case of food
distribution.

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.

There are some special bulk boxes or pallet bins made from unusually strong
corrugated board or fabricated form plastics or metal, the method of which depends on
the type and weight of product and its protective needs. The cargo containers made of
aluminum used to hold many pallet loads of goods can be transferred to or from ships,
trains and flatbed trucks by giant cranes.
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,
maximum retail price (MRP).

Packaging of medicine and some food products is required to provide information on

methods of preparations, recipes and serving ideas, nutritional benefits, and date of
manufacturing, date of expiry, warning messages and cautionary information.
Sometimes, the color of the packaging itself provides some information.

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.

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

Packaging Decisions:
i. 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
ii. Engineering tests:
This will ensure that the package stands up under normal conditions
iii. Visual tests:
This is to ensure that the script is legible and colors are harmonious
iv. Dealer tests:
This is to ensure that the dealers find the packages attractive and easy to handle
v. Consumer tests:
This is to ensure favorable consumer response
7. POSITIONING

Finally, the seventh P in the Marketing Mix is Positioning. When a company p resents 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.

There are three basic concepts for positioning. These are Functional Positions,
Symbolic Positions and Experiential Positions. 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 and
Experiential Positions deal with providing sensory or cognitive stimulation.
Step 1: Confirm Your Understanding of Market Dynamics
At the start of the positioning process, you need a firm understanding of your target
market and answers to the following questions:

In which product, service, or market category (also called the “frame of reference”) do
you plan to use this positioning?
Which target segment is your focus for the positioning you are developing?
What factors do these buyers evaluate when they make a purchasing decision?
How do these buyers view your competitors in the category?
If you don’t have answers to these questions, you should consider conducting formal
or informal marketing research to reach a better understanding of your target market
and the market dynamics around it.

Step 2: Identify Your Competitive Advantages

A competitive advantage is some trait, quality, or capability that allows you to

outperform the competition. It gives your product, service, or brand an advantage over
others in purchasing decisions. Competitive advantage may come from and or all of
the following:

Price: Something in your production process or supply chain may make it possible for
you to provide comparable value at a lower cost than competitors.
Features: You may provide tangible or intangible features that your competitors do
not: for example, more colors, better taste, a more elegant design, quicker delivery,
personalized service, etc.
Benefits: You may provide unique benefits to customers that your competitors cannot
match. Benefits are intangible strengths or outcomes your customer gets when they
use your offering. For example, time savings, convenience, increased control,
enjoyment, relaxation, more choices, feeling better about oneself, being more
attractive, etc.

Create a list of the things that make you different from competitors in positive ways.
Then identify which of these factors are also competitive advantages: the influential
factors that help you perform better in the marketplace and cause customers to choose
your product, service, or brand over other options.
Step 3: Choose Competitive Advantages That Define Your Niche

Your list of competitive advantages represents a set of possible positioning strategies

you could pursue for your product, service, or brand. The next step is to examine how
these factors fit into customer perceptions of your broader competitive set. Your goal
is to pick a positioning approach that gives you a unique and valued position in the
market that competitors are not addressing.

How to Create an Effective Market Positioning Strategy?

Create a positioning statement that will serve to identify your business and how
you want the brand to be perceived by consumers.

1. Determine company uniqueness by comparing to competitors

Compare and contrast differences between your company and competitors to
identify opportunities. Focus on your strengths and how it can exploit these
opportunities.
2. Identify current market position
Identify your existing market position and how the new positioning will be
beneficial in setting you apart from competitors.

3. Competitor positioning analysis

Identify the conditions of the marketplace and the amount of influence each
competitor can place on each other.

4. Develop a positioning strategy

Through the preceding steps, you should achieve an understanding of what your
company is, how your company is different from competitors, the conditions of
the marketplace, opportunities in the marketplace, and how your company can
position itself.
 Intellectual Property Rights

Developing a Brand Name

Now as a future entrepreneur, how do you describe the sales of your product being
displayed on the shelves of various malls and groceries beside the product with a brand
name? Do you think the consumers will notice or remember it? Branding will ultimately
reside(s) in the mind of every consumers, thus, it plays a significant role in every
business.

Brand Name is a name, symbol, or other feature that distinguishes a seller's goods
or services in the marketplace. Your brand is one of your greatest assets because your
brand is your customers' over-all experience of your business.

Brand strategy is a long-term design for the development of a popular brand in order
to
achieve the goals and objectives. A well-defined brand strategy shakes all parts of a
business and is directly linked to customer needs, wants, emotions, and competitive
surroundings.
Experts believe that a good brand can result in better loyalty for its customers, a
better corporate image and a more relevant identity.

As more customers continue to differentiate between emotional and experienced

companies, a brand may be the first step forward in your competition instead of price
points and product features. The question is, can you build a brand which truly talks
to your audience?

Branding is a powerful and sustainable high-level marketing strategy used to

create or influence a brand. Branding as a strategy to distinguish products and
companies and to build economic value to both customers and to brand owners, is
described by Pickton and Broderick in 2001.
Commonly Used Branding Strategies

1) Purpose

"Every brand makes a promise. But in a market in which customer confidence is

little and budgetary observance is great, it’s not just making a promise that separates
one brand from another, but having a significant purpose," (Allen Adamson).

How can you define your business purpose? According to Business Strategy
Insider, purpose can be viewed in two ways:

a. Functional. This way focuses on the assessments of success in terms of fast

and profitable reasons. For example, the purpose of the business is to make
money.
b. Intentional. This way focuses on fulfillment as it relates to the capability to
generate money and do well in the world.

2) Consistency
The significance of consistency is to avoid things that don’t relate to or improve
your brand. Consistency aids to brand recognition, which fuels customer loyalty.

3) Emotion

There should be an emotional voice, whispering "Buy me". This means you allow
the customers to have the chance to feel that they are part of your brand.

You should find ways to connect more deeply and emotionally with your
customers. Make them feel part of the family and use emotion to build relationships
and promote brand loyalty.

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.

According to Kevin Budelmann, "Effective identity programs require sufficient

consistency to be identifiable, but sufficient variation to keep things fresh and human,"
so if your old tactics don't work anymore, don't be afraid to change. It doesn’t mean it
worked in the past it may still work now.

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

Loyalty 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.