7PS-of-operation.pdf

LET THE MARKET KNOW YOU BETTER 9/19/2024  Activity Arrange the following le ers to form the word that is being defined.  AEIGKNMRT Managerial process of producing, pricing, distributing and promoting products to satisfy the needs wants and demands of...

LET THE MARKET KNOW YOU BETTER 9/19/2024  Activity Arrange the following le ers to form the word that is being defined.  AEIGKNMRT Managerial process of producing, pricing, distributing and promoting products to satisfy the needs wants and demands of the market 9/19/2024  MARKETING Managerial process of producing, pricing, distributing and promoting products to satisfy the needs wants and demands of the market 9/19/2024  AEKMTR Simply the customers and consumers of a business 9/19/2024  MARKET Simply the customers and consumers of a business 9/19/2024  IIIOONNGTSP It means placing/pu ing the enterprise in a pa icular target market. 9/19/2024  POSITIONING It means placing/pu ing the enterprise in a pa icular target market. 9/19/2024  OUCDRPT Is something that is viewed as capable of satisfying a need or a want. 9/19/2024  PRODUCT Is something that is viewed as capable of satisfying a need or a want. 9/19/2024  AECLP It is a building or location with a pa icular purpose. 9/19/2024  PLACE It is a building or location with a pa icular purpose. 9/19/2024  IIOOOMNTPR Is an explicit communication strategy adopted by an enterprise to elicit the patronage, loyalty and suppo from customer and other stakeholder. 9/19/2024  PROMOTION Is an explicit communication strategy adopted by an enterprise to elicit the patronage, loyalty and suppo from customer and other stakeholder. 9/19/2024  EICPR Means the money value of a product or service expressed in terms of peso and or centavos. 9/19/2024  PRICE Means the money value of a product or service expressed in terms of peso and or centavos. 9/19/2024  AEGRTTSY A carefully devised plan of action to achieve a goal, or the a of developing or carrying out such a plan 9/19/2024  STRATEGY A carefully devised plan of action to achieve a goal, or the a of developing or carrying out such a plan 9/19/2024  EEOLPP They distribute, promote, price and sell the products in the most a ractive market places. 9/19/2024  PEOPLE They distribute, promote, price and sell the products in the most a ractive market places. 9/19/2024  AAICGGKNP Identifies the product, describes its features and benefits, and complies with government rules on specifying its contents, weight and others. 9/19/2024  PACKAGING Identifies the product, describes its features and benefits, and complies with government rules on specifying its contents, weight and others. 9/19/2024 The Marketing Mix Packaging Positioning People  WHAT IS MARKETING? Marketing is a process that depends on customer’s needs & demands. Needs & demands are dynamic that changes time to time so marketing definition change according to  Marketing has been defined as a social and managerial process by which individuals and groups obtain what they need and want 25through creating and exchanging products and value with others. 2 9/19/2024 5  What is a Marketing Mix? The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives 7Ps – Price, Product, Promotion, Place, People, Packaging and Positioning Traditional 4Ps extended to encompass growth of service industry Marketing Mix  A Marketing Strategy consists of selecting a segment of the market as the company’s target market and designing the proper “mix” of the product/service, price, promotion, and distribution system to meet the wants and needs of the consumers within the target market. W 2 9/19/2024 8 1. PRODUCT Is something that is viewed as capable of satisfying a need or a want. It can be an object, service, activity, person, place, organization or idea. It is o en identified with their brand names to distinguish them from other products in the market. 9/19/2024  Four General Types 1.Breakthrough products –offers completely new pe ormance benefits, more convenient and easy to use , create new demand and needs a higher level of customer education and orientation. 2.Differentiated products- try o claim new space in the mind of the customer different from the space occupied by existing products 3. Copycat products- needs aggressive adve ising may add to market demand but a greater cost than the leading brand 4. Niche products- products with lower reach, lower visibility, lower prices and lower top of mind.  31 DEPARTMENT OF EDUCATION – BUREAU OF CURRICULUM DEVELOPMENT  32 DEPARTMENT OF EDUCATION – BUREAU OF CURRICULUM DEVELOPMENT  33 DEPARTMENT OF EDUCATION – BUREAU OF CURRICULUM DEVELOPMENT 2. Price Means the money value of a product or service expressed in terms of peso and or centavos. It depends on the business objectives set by the enterprise. 9/19/2024 2. Price 1. Profit maximization 2. Revenue maximization 3. market share maximization 4. A ainment of the desired prestige or quality leadership 5. Penetration, survival, or liquidation 6. Scarcity pricing or market skimming 7. Cost recovery 8. Subsidy pricing 9/19/2024 Profit, Revenue, and Market Share Maximization Price Volume Total Revenues Total Costs* Total Profits Unit Cost Php 10 100 Php 1, 000 Php 800 Php 200 Php 8.00 Php 12 90 Php 1,080 Php 750 Php 330 Php. 8.33 Php 14 75 Php 1,050 Php 675 Php 375 Php 9.00 Php 16 60 Php 960 Php 600 Php 360 Php 10.00 Php 18 50 Php 900 Php 550 Php 350 Php 11.00 9/19/2024 *Assumes the following: Fixed Costs equal P300; Variable Costs equal P5 per unit.  PRICING OBJECTIVES A. Introductory or promotional Pricing - launching a new product B. Discount Pricing - may be give to loyal and regular customers to maintain their patronage 9/19/2024  PRICING OBJECTIVES C. Profit-Oriented Objectives Target return- set a specific level of profit Profit maximization- charging higher prices D. Sales-oriented Objectives E. Status-quo Objectives 9/19/2024 2. Price 1. Differential pricing strategies 2. Competitive pricing strategies 3. Product-line pricing strategies 4. Psychological and image pricing strategies 5. Distribution-based pricing strategies 9/19/2024 3. Place The third of the four Ps, Place, involves ma ers on how to make a product or service available to the public. It is the science and system behind ge ing the producers to their end consumers. It may well be one of the most complex design decisions to make for a firm. Place implies that they either (a) set up their own distribution network, or (b) rely on the capabilities of other pa ies. 9/19/2024 3. Place The primary purpose of place is to get the products from the producer to the hands of the end users. Sometimes this would be via direct selling or even online selling. Sometimes sales people may be involved. Sometimes a whole chain of distributions may be needed, ranging from wholesalers to jobbers and retail sellers. This P is therefore also concerned about options and strategies for se ing up the distribution system. 9/19/2024 Choice of location must be based on the following: Image and location conditions. Exact fit to target customers. Clustering of competitor establishments. Future area development. Fiscal and regulatory requirements. 9/19/2024  Activity: 1 Explain and give examples on the following Relevant Location Drivers Physical Proximity to Target Market Customer Traffic Flow Industry Clustering Convergence of Multiple Industries Population Concentrations Activity Hubs Growth Potential Business Climate 9/19/2024 4. Promotion Is an explicit communication strategy adopted by an enterprise to elicit the patronage, loyalty and suppo from customer and other stakeholder. 4. Promotion Promotion encompasses by the ff: 1.Direct communication 2.Indirect through quality of product 3.Indirect through packaging a ractiveness 4.Indirect by communicating to people 5.Indirect by location 6.Pricing strategy 4. Promotion Promotion is the element in an organization’s marketing mix that serves to inform, persuade and remind the market about the organisation and/or its products. PROMOTIONAL MIX Personal selling: the presentation of a product to a prospective customer by a firm’s sales executive. Adve ising: paid, non-personal mass communication, in which the sponsor is clearly identified. 4. Promotion PROMOTIONAL MIX Sales promotion: demand-stimulating activity designed to supplement adve ising and co-ordinate personal selling. Publicity: a non-paid form of adve ising that uses mass communication to stimulate demand. Public relations: a planned communication effo by an organisation to contribute to generally favourable a itudes and opinions toward an organisation and its products. 4. Promotion 1.Adve ising - The activity or profession of producing information for promoting the sale of commercial products or services. 2. Branding - An identifying symbol, words, or mark that distinguishes a product or company from its competitors. Usually brands are registered (trademarked) with a regulatory authority and so cannot be used freely by other pa ies. For many products and companies, branding is an essential pa of marketing. Brand- is a name, term , design or symbol or other feature that distinguishes an organizational rivals in the eyes of the customer. Brand equity- is used to describe the value of having the well known brand name based on consumer perception * branding and brand equity development should go hand-and hand with positioning.  BRANDS Brand Is a word, mark , symbol or a combination of them used to identify the marketers product of service A BRANDMARK. is a non-registered design, symbol or product logo. A BRANDNAME is a something which can be vocalized or spoken. A TRADENAME is a registered company name. A TRADEMARK is a brand registered under the Philippine Patent Office and therefore given legal protection. TRADEMARK can be recognized with the presence of any of the following Words of symbols on product labels or package: 1. REG. phil pat off ---- meaning registered under the Philippine patent office 2. R means registered 3. * ---- asterisk mark 4. C – copyright under IMPORTANCE OF BRANDING FOR SELLERS 1. BRANDING SIMPLIFIES SALES PROMOTION. 2. BRANDING ENCOURAGES REPEAT SALES 3. BRANDING PROVIDES PROTECTION AGAINST SUBSTITUTION. 4. BRANDING MINIMIZE COMPARISONS. 5. BRANDING AIDS IN SEMENTATION. 6. BRANDING FACILITIES THE INTRODUCTION OF ITEMS. 7. BRANDING AFFORDS GREATER PRICE STABILITY. 8. BRANDED MERCHANDISE ARE PREFERRED BY MANY MIDDLE MAN.  Characteristics of good brand names 1.It must be easy to remember. 2.It must suggest something about product benefits or use. 3.It must be distinctive 4.It must be legally protected. 4. Promotion Endorsement - A wri en or public statement by a celebrity, business or professional group extolling the vi ues of a product and recommending the use of the product to the public. A product endorsement from an authoritative figure is a key element in business adve ising and marketing campaigns. Competitive advantage – promotion differentiate your product with your competitors. And provide edge in business. 4. Promotion A brochure isn’t necessarily the best way of promoting your business, the problem being that once a brochure has been printed, the information is fixed. You can’t change or remove anything should the need arise. A more cost effective and flexible option might be a folder with a professionally designed sheet inside, over a series of your own information sheets can be customized by varying them to suit the target customers and/or changing them as required. 4. Promotion TRIMP-television,radio,internet, mobile and print media Sales promotion relies on gimmickry,and point of purchase a raction, and incentive for buyers 5. Packaging Packaging is the first distinction of a product. A product could be easily recognized by it’s appearance. 5. Packaging Purposes of packaging 1. Provides product identification 2.Differentiate the product from its competitor 3.Lengthen the lifespan physically protects and extends usefulness of the product 4. Becomes environmental issue 5. Price of the product 5. Packaging 1. It identifies the product, describes its features and benefits, and complies with government rules on specifying its contents, weight, chemical composition, and potency. 2. It differentiates the product from its competitors and even from its other brand offerings. 5. Packaging 3. Packaging lengthens the lifespan, physically protects and extends the usefulness of the product. 4. Packaging has become an environmental issue by itself. 5. The aforementioned purposes of packaging have increased the cost of packaging and, therefore, the price of the product. Reasons for Packaging packaging Packaging strategies a. product 1. Family packaging protection 2. Reuse packaging b. for promotion 3. Multiple c. profit packaging possibilities 9/19/2024 5. Packaging What are the information on the Packaging  6.MeansPositioning placing/pu ing the enterprise in a pa icular target market.  A process of a marketers use to determine how to best communicate their products a ributes to their target market based on their need , competitive pressure, available communication channels and carefully cra ed messages.  It outlines what a business should do to market the product  Creates an image for product based on intended audience Why is it necessary to do product positioning? Objectives 1. Enterprise perspective – to address needs of the chosen target market 2.Competitive perspective- to differentiate and distinguish itself from its competitors 3. Customer’s perspective- to let customer perceive the enterprise and its product and services in their mind. How to do product positioning ?  Enterprise can establish product positioning by sta ing own product creation or with their customer’s outcome expectation  The competitive landscape of enterprise can be clearly mapped out by : Latitude –lays out what is impo ant to the customer segments from their differing points of view. Longitude –in the marketing map represents the product features and a ributes of competitors in the market place How to do product positioning ?  The enterprise should be mindful of the main value proposition( MVP) to its customer relative to the its competitors  The enterprise must have endeavour to build a brand of each product for the ff: 1. To differentiate product to other product 2. Avoid commodity image 3. To fill space to customer mind 7. People People are the ultimate marketing strategy. People sell and push the product. People distribute, promote, price and sell the product. 9/19/2024 Marketing Effo s of People 1. To create customer awareness. 2. To arouse customer interest. 3. To educate customers as they evaluate their buying choices. 4. To close the sale and deliver the products. 9/19/2024 Products at the closing sale demand should be: AVAILABILITY - the goods o services are on hand ACCESSIBLE - the customers can easily get the product from their usual buying places or the products can conviniently delivered to them 9/19/2024 Products at the closing sale demand should be: ADEQUATE- the product meets the quality and delivery specifications of the customer AFFORDABLE - the price and payment terms are right 9/19/2024 Products at the closing sale demand should be: ACCEPTABLE - the customer is convinced by the selling points of the product and accepts the condition, warranties and amenities given by the seller 9/19/2024