INNOVATIVE COLLEGE OF SCIENCE AND TECHNOLOGY

MALITBOG BONGABONG ORIENTAL MINDORO

Business Administration Department
MARKETING MANAGEMENT
MARIANE M. LADLAD, LPT.

MODULE 2

I. INTRODUCTION
MARKETING MIX
What Are the 4 Ps of a Marketing Mix?
The four Ps classification for developing an effective marketing strategy was first
introduced in 1960 by marketing professor and author E. Jerome McCarthy. It was
published in the book entitled Basic Marketing: A Managerial Approach.1 Depending on
the industry and the target of the marketing plan, marketing managers may take various
approaches to each of the four Ps. Each element can be examined independently, but in
practice, they often are dependent on one another.

Product
This represents an item or service designed to satisfy customer needs and wants.
To effectively market a product or service, it's important to identify what differentiates it
from competing products or services. It's also important to determine if other products or
services can be marketed in conjunction with it.

Price
The sale price of the product reflects what consumers are willing to pay for it.
Marketing professionals need to consider costs related to research and development,
manufacturing, marketing, and distribution—otherwise known as cost-based
pricing. Pricing based primarily on consumers' perceived quality or value is known
as value-based pricing.

Place
When determining areas of distribution, it's important to consider the type of
product sold. Basic consumer products, such as paper goods, often are readily available
in many stores. Premium consumer products, however, typically are available only in
select stores.

Promotion
Joint marketing campaigns are called a promotional mix. Activities might include
advertising, sales promotion, personal selling, and public relations. One key
consideration is the budget assigned to the marketing mix. Marketing professionals
carefully construct a message that often incorporates details from the other three Ps
when trying to reach their target audience. Determination of the best mediums to
communicate the message and decisions about the frequency of the communication also
are important.

What Are Other Marketing Tools?

Not all marketing is product-focused. Customer service
businesses are fundamentally different than those based primarily on physical products,
so they often will take a consumer-centric approach that incorporates additional
elements to address their unique needs.
Three additional Ps tied to this type of marketing mix might include people,
process, and physical evidence. "People" refers to employees who represent a company
as they interact with clients or customers. "Process" represents the method or flow of
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MALITBOG BONGABONG ORIENTAL MINDORO
Business Administration Department
providing service to clients and often incorporates monitoring service performance for
customer satisfaction. "Physical evidence" relates to an area or space where company
representatives and customers interact. Marketers take into consideration elements such
as furniture, signage, and layout.

Additionally, marketers often study consumers in order to refine or update

strategies related to services or products. This requires a strategy for communicating
with consumers in order to obtain feedback and define the type of feedback being
sought.
Traditionally, marketing commences with identifying consumers' needs and ceases with
the delivery and promotion of a final product or service. Consumer-centric marketing is
more cyclical. Its goals include reassessing customers' needs, communicating frequently,
and developing strategies to build customer loyalty.

What Are the 7 Ps in a Marketing Mix?

Sometimes, the marketing mix can extend beyond the classic four Ps of product, price,
placement, and promotion established by professor E. Jerome McCarthy in 1960. These
additional categories include people, physical evidence, and process.
1. Product: This refers to what a business offers to satisfy customer needs. It can be
a physical good,
service, or a combination of both. Key considerations include product design, featu
res, quality, branding, and the product life cycle. Understanding the target market'
s needs is crucial for product development.
2. Price: Price is the amount customers pay for the product. It plays a significant role
in positioning the product in the market and affects demand and profitability. Pricin
g strategies can include cost-based pricing, value-based pricing, and competition-
based pricing. It's essential to find a balance that reflects the product's value while
remaining competitive
3. Place: This element involves the distribution channels used to deliver the product
to customers. It
includes the locations where the product is sold and how it is accessed, whether th
rough physical stores, online platforms, or other means. Effective distribution strat
egies ensure that products are available
where and when customers want them.
4. Promotion: Promotion encompasses all the activities that communicate the produ
ct's benefits and
persuade customers to purchase. This includes advertising, sales promotions, publi
c relations, and personal selling.A wellcrafted promotional strategy helps to raise a
wareness and generate interest in the product.
5. People: This refers to everyone involved in the product or service delivery, includi
ng employees, management, and customers. The interactions between these grou
ps can significantly impact customer
satisfaction and brand perception. Training and customer service are critical comp
onents of this element.
6. Process: The processes involved in delivering the product or service to the custom
er are crucial for
ensuring efficiency and quality. This includes the systems and procedures that facil
itate service delivery, customer interactions, and overall operational efficiency.
7. Physical Evidence: This refers to the tangible aspects that support the service or
product, such as

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 INNOVATIVE COLLEGE OF SCIENCE AND TECHNOLOGY
MALITBOG BONGABONG ORIENTAL MINDORO
Business Administration Department
packaging, branding, and the physical environment where the service is delivered.
Physical evidence
helps to reinforce the brand image and provides customers with a way to evaluate
the service before purchase.

MARKETING STRATEGY
A clear marketing strategy should revolve around the company’s value proposition.
This communicates to consumers what the company stands for, how it operates, and
why it deserves the customers' business. A well-constructed value proposition provides
marketing teams with a template that should inform their initiatives across all of the
company’s products and services.
The ultimate goal of a marketing strategy is to achieve and communicate a
sustainable competitive advantage over rival companies. To do this, a business must
understand the needs and wants of its customers. Whether it’s a print ad design, mass
customization, or a social media campaign, a marketing asset should effectively
communicate a company’s core value proposition.

Marketing strategy- is an explanation of the goals needed by the company to

accomplish its marketing efforts. It is shaped by the company’s business goals and
objectives.

THE NATURE OF STRATEGY

Strategy
Derived from the ancient Greek word “strategos”. Its plain translation meant
“the general’s art”.
It is not a thing but rather an ongoing process.
It is a way of thinking about a business, of assessing its strengths, diagnosing its
weaknesses, of envisioning its possibilities.
Ohmae (Kenichi Ohmae)
Famous Japanese Strategy Guru, give the simplest definition of strategy “ as
paying attention to customer needs and avoiding direct competition.
Walker, Mullins, Boyd, and Larrenche
In their book Marketing Strategy: A decision- FocusedApproach described the term
as: “A strategy is fundamental pattern of present and planned objectives,
resources deployments, and interactions of an organization with markets,
competitors, and other environmental factors”.

It says that a strategy should always be able to specify:

1. What- Objectives to be accomplished.
2. Where- As in, on which industries and markets to focus.
3. How- To allocate resources and activities, so as to meet environment opportunities
and threats in each product- market and also gain a competitive advantage.

Component of Strategy
Strategy- is a design or plan for achieving a company’s policy goals and objectives.
There are five components or sets of issues within a well- developed strategy:
1. Scope

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 INNOVATIVE COLLEGE OF SCIENCE AND TECHNOLOGY
MALITBOG BONGABONG ORIENTAL MINDORO
Business Administration Department
The scope of the company is the extensiveness of its strategic sphere such as the
number and types of industries, product lines, and market segments it competes in
or plans to penetrate.
2. Goals and Objectives
Strategies need also to specify preferred levels of accomplishments on one or
more facets of performance such as volume growth, profit contribution, or return
on investment over particular time frame for each of those businesses and
product-markets and for the entire company.
3. Resource deployments
Every organization has restricted financial and human resources.
4. Identification of a suitable competitive advantage
One vital part of any strategy is a plan of how the company will participate in each
business and public-market within its industry.
5. Synergy
Synergy is present when the company’s businesses, product- markets and the
company’s unique competencies or strengths comparable to its competitors.
Hierarchy of Strategies
According to Walker et. al (2006), the three major levels of strategy in most large,
multiproduct organizations are:
1. Corporate Strategy
The corporate strategies are managed by the corporate level, which is the top level
in any organization.
Corporate managers are concerned with the issues of entire company, and their
decisions or actions influence all other organization levels.
2. Business Level Strategy
The business level consists of smaller units within the whole organization that are
commonly administered as self- contained businesses.
3. Functional Strategies
The functional level comprises all the different functional areas within a business
unit.
Also termed as marketing level.

Corporate Strategies- include creating an organizational structure, debt reduction to

improve the company’s balance sheet, diversifying the product or service line to
increase profits or decrease dependence on one product, merging with or buying another
business to create economies of scale, assessing new technology and increasing sales
volume, reducing overhead costs to increase profit margin, retooling to decrease
production costs and reducing overall operating expenses.

Corporate Mission- traditionally acted as a way to tell potential shareholders and

investors more about a company and its purpose.
Mission statement- is a statement of the organization’s reason for being, its purpose or
what it wants to achieve in the larger environment.

Good mission statements have three major characteristics:

1. Mission statement focus on a limited number of goals. The statement, ‘’ We want to
produce the highest- quality products, offer the most service, achieve the widest
distribution, and sell at the lowest prices” says too much.

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 INNOVATIVE COLLEGE OF SCIENCE AND TECHNOLOGY
MALITBOG BONGABONG ORIENTAL MINDORO
Business Administration Department
2. Mission statements highlight the company’s major policies and values. They taper the
range of individual discretion so that employees act consistently on important issues.

3. Mission statement define the major competitive spheres within which the company
will operate:
a. The range of industries in which a company will operate
b. The range of products and applications a company will supply
c. The range of technological and other core competencies that a company will master
and leverage.
d. The type of market or customers a company will see.
e. The number of channel levels from raw materials to final product and distribution in
which a company will participate.
f. the range of regions, countries, or country groups in which a company will operate.

Elements of the Mission statement

1. A purpose
Why does the business exist? Is it to create wealth for shareholders? Does it exist
to satisfy the needs of all stakeholders including employees, and society at large?

2. A strategy and strategy scope

A company’s strategic scope defines the boundaries of its operations. These are
set by management. The decisions management make about strategic scope
define the nature of the business.
A mission statement provides the commercial logic for the business and so defines
two things:
a. The product or services it offers and its competitive position.
b. The competences through which it tries to succeed and its method of
competing.
3. Policies and Standards of Behavior
A mission statements need to be converted into everyday actions.
4. Values and Culture
The value of the business are thefundamental, frequently implicit, beliefs of the
people who work in the business. These would comprise:
a. Business principles- social policy, commitments to customers.
b. loyalty and commitment- employees inspired to sacrifice their personal goals for
the good of the business as a whole; does the business demonstrate a high level of
commitment and loyalty to its staff.
c. Guidance on expected behaviour-a strong sense of mission helps create a work
environment where there is a common purpose.

Characteristics of a Mission
1. It should be feasible.
2. It should be precise.
3. It should be clear.
4. It should be motivating.
5. it should be distinctive.
6. It should indicate major components of strategy.
7. It should indicate how objectives are to be accomplished.

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MALITBOG BONGABONG ORIENTAL MINDORO
Business Administration Department
Company Vision – seeks to outline where the company is headed and what values are
guiding that journey. It tells the company’s purpose by focusing on the future and what
the organization exists to accomplish.
Vision Statement- can be written as simple as a single sentence or can be lengthy as a
short paragraph.
Marketing Objectives- set out what a business wants to achieve from its marketing
activities.

SMART Objectives
1. S- specific- Details exactly what needs to be done.
2. M- Measurable- Achievement or progress can be measured.
3. A-Achievable- Objectives is acceptable by those responsible for achieving it.
4. R- Realistic-Objective is possible to attain (important for motivational effect)
5. T- Timed- Time period for achievement is clearly stated.

GOAL- takes on a much broader view and is typically the focus of the primary outcome.
OBJECTIVE- is a step that may be taken to reach that goal.
Competitive advantage- is a gain over competitors achieved by offering consumers
greater value, either by means of lower prices or by providing greater benefits and
service that justifies higher prices.

There are different types of competitive advantages that companies can actually use,
which could be in the form of:
1. Cost Competitive advantage
It is when a company is able to utilize its skilled workforce, inexpensive raw
materials, controlled costs, and efficient operations to create maximum value to
customers. There are a few other important ways used by technical companies
that costs can be kept lower to use as cost competitive advantage, such as:
A. Product design- This is important to companies that utilize advanced technology.
B. Reengineering- This is used by companies that are capable to slash costs by means
of redesigning and creating improvements to their products, for instance Apple.
C. New delivery method- This is created by some companies for their product or
service, resulting in great cost savings that they are able to share with their customers.

2. Product/ service differentiation- This is another way that companies can have a
competitive advantage in the marketplace.

Corporate Growth Strategies

1. Intensive Growth Strategies
Intensive growth is when the company grows by expanding, its product line or its
market reach.
Intensive growth strategies are likely to help the firm grow in the market faster
and make the company stronger.
A. Market Penetration
A company uses a market penetration strategy when it decides to market current
products within the same market it has been using. It is a strategy perfected by
large consumer goods companies.
B. Market Development
This strategy is to devise a way to sell more of current product to an adjacent
market.

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 INNOVATIVE COLLEGE OF SCIENCE AND TECHNOLOGY
MALITBOG BONGABONG ORIENTAL MINDORO
Business Administration Department
Ex. When Jollibee Foods Corp made an aggresive international expansion.
C. Alternative Channel
This growth strategy involves pursuing customers in a different ways such as
selling product online .
D. Product Development
A classic strategy, it involves developing new products to sell to both current and
new customers.
E. Diversification
Intensive growth strategies in business also include diversification, where a
company will sell new products to new markets.
Ex. San Miguel Corporation

2. Integrative Growth Strategies

Integrative growth strategy is used for growth in which a company acquires some
other element of the chain of distributions of which it is a member.
A. Horizontal
Horizontal growth strategy would involve buying a competing business or
businesses.
B. Backward
A backward integrative growth strategy would involve buying one of the
company's suppliers as a way to better control its supply chain.
C. Forward
A company performs forward integration strategy when it merges with or
purchases an organization involved in the distribution of its products.
D. Complete or Balanced
This strategy means a company controls all components from raw materials to
final delivery.

4 Porter's Generic Strategy

1. Cost Leadership
Using the cost leadership as strategy, the objectives is to become the lowest-cost
producer in the industry.
2. Cost Focus
Exploits differences in cost behavior in some segments.
Ex. Zagu
3. Differentiation Leadership
Using the differentiation leadership, the business targets much larger markets and
aims to attain competitive advantage across the whole of an industry.
Differentiation is about charging a premium price that more than covers the
additional production cost and about providing customers obvious reason to desire
the product over other, less differentiated products.
4. Differentiation focus
In the differentiation focus strategy, a business aims to differentiate within just one
or small number of target market segments.

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MALITBOG BONGABONG ORIENTAL MINDORO
Business Administration Department

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