11/12

Entrepreneurship

Week 7 | Day 25 to Day 28

Quarter 1 – Module 7:
Marketing Mix: Place and
Promotion

SELF-LEARNING MODULE

DIVISION OF GENERAL SANTOS CITY

Entrepreneurship – 11/12
Self-Learning Module (SLM)
Quarter 1 – Module 7: Marketing Mix – Product and Price
First Edition, 2020

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of the Government of the Philippines. However, prior approval of the government agency or
office wherein the work is created shall be necessary for exploitation of such work for profit.
Such agency or office may, among other things, impose as a condition the payment of
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Every effort has been exerted to locate and seek permission to use these materials from
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ownership over them.

Development Team of the Module

Writer: Ma. Annabelle A. Linobo
Editors: Junrey Villa
Reviewers: Luzviminda R. Loreno , Amalia C. Caballes
Illustrator: Name
Layout Artist: Rhoniel F. Medrano
Cover Art Designer: Reggie D. Galindez
Management Team: Romelito G. Flores, CESO V – Schools Division Superintendent
Mario M. Bermudez, CESO VI – Asst. Schools Division
Superintendent
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Sally A. Palomo, EPS - LRMS
Gregorio O. Ruales, EPS – ADM Coordinator
Dr. Luzviminda R. Loreno – Division Senior High School
Coordinator
Gregorio O. Ruales - Division ADM Coordinator
Luzviminda R. Loreno - EPS, Values/ SHS Coordinator
Amalia C. Caballes - EPS, EPP/TLE/TVL

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E-mail Address: depedgensan@[Link]
 11/12

Week 7 | Day 25 to Day 28

Entrepreneurship
Quarter 1 – Module 7:
Marketing Mix – Product and
Price

i
Introductory Message
For the facilitator:

Welcome to the Entrepreneurship 11/12 Self-Learning Module (SLM) on Marketing

Mix – Product and Price!

This module was collaboratively designed, developed and reviewed by educators

both from public and private institutions to assist you, the teacher or facilitator in
helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration
their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.

ii
For the learner:

Welcome to the Entrepreneurship 11/12 Self-Learning Module (SLM) on Marketing

Mix – Product and Price!

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in
your own hands!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
what you learned from the lesson.

What I Can Do This section provides an activity which will

help you transfer your new knowledge or

iii
 skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of
the lesson learned. This also tends retention
of learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in

developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

iv
 What I Need to Know

This module was designed and written with you in mind. It is here to help
you master the Marketing Mix – Product and Price. The scope of this module
permits it to be used in many different learning situations. The language used
recognizes the diverse vocabulary level of students. The lessons are arranged to
follow the standard sequence of the course. But the order in which you read them
can be changed to correspond with the textbook you are now using.

In this module, you will be able to recognize the importance of marketing

mix in the development of marketing strategy specifically for Product and
Price (TLE_ICTAN11/12EM-Ia-1).

The module is divided into two lessons, namely:

 Lesson 1 – Product
 Lesson 2 – Price
After going through this module, you are expected to:
1. describe the Marketing Mix specifically Product and Price in relation to
the business opportunity,
2. give the importance of Marketing Mix particularly Product and Price,
3. compute the type of pricing approach to be used in the proposed
product/service; and,
4. develop a product description of the proposed product or service.

1
 What I Know

Before we begin our lesson, let’s check yourselves how much you already
know about marketing mix particularly Product and Price.

Directions: Read the sentences/statements carefully. Choose the letter of the

correct answer. Encircle the letter of your choice.

1. It offers completely new performance benefits. They may double the

performance at half the cost.
a. tangible
b. core product
c. augmented product
d. breakthrough product

2. Aggressive advertising may add to market demand but at a greater cost than
the leading brands.
a. niche products
b. copycat products
c. differentiated products
d. none of the above

3. This pricing method refers to the setting of prices on the basis of costs.
a. cost plus pricing
b. cost based approach
c. buyer based approach
d. competition based approach

4. Do not intend to compete directly with the giants. They are products with
lower reach, lower visibility, lower prices, and lower top of mind.
a. niche product
b. copycat products
c. differentiated products
d. none of the above

5. It is the physical and touchable property of a product.

a. tangible
b. core product
c. augmented product
d. breakthrough products

2
6. Anything that can be offered to a market for attention, acquisition, use or
consumption.
a. place
b. price
c. product
d. promotion

7. The amount of money paid by the customer to the selling firm so the
customer can use the product.
a. place
b. price
c. product
d. promotion

8. This refers to the practice of setting price even below peso amounts.
a. loss-leader pricing
b. price lining pricing
c. odd-numbered pricing
d. perceived value pricing

9. It is that part of the total product that the consumer is actually buying.
a. tangible
b. core product
c. augmented product
d. breakthrough products

10. It is the part where the seller provides additional services and privileges to
consumers of the product.
a. tangible
b. core product
c. augmented product
d. breakthrough products

11. These products try to claim new space in the mind of the customer different
from the spaces occupied by existing products.
a. tangible
b. augmented product
c. differentiated product
d. breakthrough products

12. These are frequently and immediately bought, low priced and has many
purchase locations. It includes staple goods, impulse goods and emergency
goods.
a. shopping products
b. specialty products
c. unsought products
d. convenience products

3
13. These are items that are purchased when a sudden problem has to be
solved.
a. shopping products
b. specialty products
c. unsought products
d. convenience products

14. Whenever feasible and competitive, prices are kept as is.

a. breakeven pricing
b. sealed bid pricing
c. price maintenance
d. competitive pricing

15. In this kind of pricing policy, price is determined based on the contract bid.
a. breakeven pricing
b. sealed bid pricing
c. price maintenance
d. competitive pricing

4
Lesson
Marketing Mix: Product
1
Great Day students! In our previous lesson we discussed the about the
environment and market of your locality/town. You have probably determine who
your customers are in terms of target market, customer requirements and market
size.

Today we will discuss the 1st P of the Marketing Mix-the Product/Service.

In this lesson, we will discuss the different concepts of Product/Services,

and how to make a proper description of the said product.

What’s In

You learned from your previous lesson about the environment and market of
your locality/town. It is also necessary to recognize the importance of marketing
mix in the development of your marketing strategy particularly product/services
and price. Let’s review some important points in your previous topic.

Directions: Read the sentences/statements carefully. Encircle the letter of the

correct answer.

1. Refer to a specific group of consumers at which a company aims its products

and services.
a. market
b. target market
c. market research
d. market segmentation

2. A state of being without something believe to be important and useful to

one’s life for well-being.
a. need
b. wants
c. motives
d. social needs

5
3. Human wants that are backed by buying power.
a. need
b. wants
c. motives
d. demands

4. It is referred to the ability of the business measured by its long-term survival

and its ability to sustain profits over a period of time.
a. profit
b. sales
c. viability
d. profitability

5. The degree to which a business or activity yields profit or financial gain.

a. profit
b. sales
c. viability
d. profitability

Notes to the Teacher

Teacher facilitates an activity that enables learners to use
previously taught lesson.

6
 What’s New

Let’s warm up!

Are you now ready and excited to do the activities we will cover in this
module?

The marketing mix is a significant tool for creating the right marketing
strategy and its implementation through effective tactics. The assessment of the
roles of your product, promotion, price, and place plays a vital part in your overall
marketing approach.

The mix helps in determining which marketing strategy is right for your
organization. It is the first step before you even create your business or marketing
plan. The reason is that your marketing mix decisions also have an impact on your
positioning, targeting, and segmentation decisions.

Activity 1: Refresh your mind… Match it!

Objectives:
In this activity you are expected to:

1. Determine the possible products or services that will meet the need of your
customers.
2. Select the best product/service that will meet the market need.

Instruction: Write as many products/services to your target customers shown

below.

1.

MULTICAB

2.

7
 PEANUT BUTTER

3.

STUDENTS

4.

FACE MASK

5.

BEACH RESORT

What is It

8
 Let us answer these questions as we discuss our topic.

1. What can you say about our activity?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

2. Did it give you an idea how to describe a target market of a certain

product/service?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

3. What are your learnings with regards to the activity done?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

PRODUCT

A product is anything that satisfies a need or a want. It can be sold to a

market for acquisition, use or consumption.

It includes physical, products, services, persons, places, organizations

and ideas.

It is also defined as the tangible good or the intangible service that the
business offers to its customer in order to satisfy their needs and to produce their
expected output.

Generally, there are three levels of a product.

1. The first level is the core product.

The core product is the reason for the product’s existence. It is that part of the total
product that the consumer is actually buying. In Mary Kay’s perfume case, it is the
actual content of the perfume bottle. The distributor in this level provides the buyer
with the major benefits in buying the product, aside from the additional
accompanying features and privileges that the consumer may receive.

2. The next level is called the actual product. It is the physical and
touchable property of a product.

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 3. Finally, the last level is called the augmented product.

This level is the part where the dealer provides additional services and benefits to
consumers of the product. These services can take several forms like free
maintenance, discounts, and warranties.

FOUR GENERAL TYPES OF PRODUCT:

1. Breakthrough products

These products offer completely new advantages. They may create a new
demand. They may cater to a peculiar set of customer needs that have not yet been
tapped. Marketing breakthrough products need a higher level of customer
education and orientation. Common examples of breakthrough products are borne
out of the biotechnology field particularly in terms of coming up with new vaccines
to protect from people from certain viruses like Corona Virus Disease.

2. Differentiated products

These products try to claim new space in the mind of the customer different
from the spaces occupied by existing products. The performance benefits may be
close to existing products but there would be additional benefits on special aspects
of the product. Examples are cameras that can take pictures in ground and
underwater.

3. Copycat products

Sometimes called look alike products will not make much conception on the
consumer’s mind. Aggressive advertising may add to market demand but at a
greater cost than the leading brands. The marketer should apply different
strategies by offering lower prices more physical space in the shelves, easier access
and promotional freebies.

4. Niche products.

They are products with lower reach, lower transparency and lower prices.
They play minor roles in specific and smaller market segment. Examples are
particularly expensive and high-quality coffee and customizable products, like toys
which can be individually tailored for children.

FOUR CLASSIFICATIONS OF CONSUMER PRODUCTS

First classification is the Convenience Products, these are regularly &

immediately bought, low priced and has many purchase locations. It includes
staple goods, impulse goods and emergency goods.

The second classification is the Shopping Products these are items for
which buyers are willing to spend considerable effort in planning and making a
purchase, these products also have little purchase locations and buy less frequent

10
 The third classification is the Specialty Products these are items for which
there are no acceptable substitute in the consumers’ mind. They possess one or
more unique characteristics where a significant group of buyers is willing to expend
considerable effort to obtain them.

The fourth classification is the Unsought Products these are items that are
purchased when a sudden problem has to be solved. Examples of unsought
products are emergency automobile repairs, cemetery plot, life insurance,
encyclopedias and pre-needs goods. This requires new innovations and much
advertising and personal selling.

PRODUCT DESCRIPTION

A product description is the marketing copy that explains what a product is

and why it’s worth purchasing. The purpose of a product description is to supply
customers with important information about the features and benefits of the
product so they’re compelled to buy. It also gives additional information to help
readers visualize what is being described like the following shape, size, function,
materials and operation.

There are 2 Main Types of Product Descriptions; first is the Product for
people who want to use. Second is the Process Description which describe how
same thing work.

8 ELEMENTS OF GOOD DESCRIPTION

1. Title which should promise exactly what the description will deliver;

2. Appropriate level of Detail which give enough detail to convey a clear picture
but don’t burden the reader with unnecessary information;

3. Identify your audience and their reason for using the description;

4. Illustrative visuals which use drawings, diagrams and photograph with caption
and labels that help users understand what they are looking for;

5. Appropriate and clear sequence;

6. Spatial which is used when we want readers to visualize a static item. A part of
physical description;

7. Functional that is used in describing a mechanism/device in action. Reflects

the order in which the parts function;

8. Chronological which is used to describe the process.

11
 What’s More

Activity 2: Let’s View It!

Video presentation about The 4 Ps of The Marketing Mix

Directions: Watch the video seriously and answer the following guide questions.
Link: [Link]

Guide Questions:

1. What is the video all about?

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

Rubrics:
Areas of 10 8 7 5
Assessment

Ideas Presents ideas Presents ideas Ideas are too

Ideas are
in an original in a consistent general vague or
manner manner unclear
Organization Strong and Organized Some No
organized beg/mid/end organization; organization;
beg/mid/end attempt at a lack
beg/mid/end beg/mid/end
Understanding Writing shows Writing shows a Writing shows Writing shows
strong clear adequate little
understanding understanding understanding understanding
Sentence Sentence Sentence Sentence No sense of
Structure structure structure is structure is sentence
enhances evident; limited; structure or
meaning; flows sentences sentences need flow
throughout the mostly flow to flow
piece

12
Lesson
Marketing Mix: Price
2
Good day students! In our previous lesson we had learned the different
concepts of products/services as well as the different classifications and elements
of product description.

Today we will discuss the 2nd element of the Marketing Mix-the Price.

In this lesson, we will discuss the different pricing policies and approaches
as well as Price Tag Requirement of the Consumer Act of the Philippines (R.A.
7394) who regulates he pricing of products/services.

What’s New

Activity 3: Describe Me!

Directions: Look for a product/service with label that you can find in your home
and paste it on the box provided in the module, and briefly describe each in terms
of shape, size, functions, materials, operation and price.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

13
 What is It

1. How much is the price?

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

2. Is the price of the product justifiable? State your reasons.

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

PRICE

Price refers to the amount of money paid by the customer to the selling firm
so the customer can use the product. It is the value of a thing or service that is
expressed in terms of money. In simple marketing term, price is the whole amount
of money that is equal to cost plus all incidental expenses paid for goods or
services. It is the only element among the seven P’s of the marketing mix that
generates sales revenues.

Pricing Policies

There are several pricing policies that can be adopted by leading firms. These
includes:

1. Cost-Plus Pricing. This is the most commonly used pricing method. Here,
management determines first the cost of the goods and incidental expenses, and
finally adds its desired profit percentage to arrive at the selling price. This method
is simple and straightforward. This selling price can easily be computed

2. Flexible Mark-up Method. This is a special form of cost-plus pricing. It calls for
a mark-up that is variable depending on the basis of several considerations instead
of a constant margin. This can be described as the difference between the selling
price and the cost. It can also be expressed as a percentage (%) of cost price.

3. Less-Than-Cost Pricing. This pricing method is based on the theory that it is

desirable to sell goods at prices below the cost. It is sometimes known as the
market-minus price policy. This is used if there is a need to dispose products as

14
fast as it can be done. This supports the belief that it is better to lose 25% than not
to be able to sell at all and as a result incur a 100% loss.

4. Perceived-Value Pricing. This pricing method is set by businessmen by simply

estimating how many people are willing to pay for the products. This is usually
done when pricing items or other goods that people buy based on what they
perceived is the value of the product. If the consumers think that the value of the
product is high, then they will pay a high price for it.

5. Price Maintenance. This pricing policy believes in price stability. It adheres to

the set price that has been charged in the past. Whenever feasible and competitive,
prices are kept as is. The status quo is maintained.

6. Breakeven Pricing. In this type of pricing policy, the company first determines
the breakeven point of the product. Using this data, the company can find out how
much the selling price will be to gain its desired profit.

7. Sealed Bid Pricing. In this kind of pricing policy, price is determined based on
the contract bid. Examples of this type of pricing are found in government biddings
where contracts are farm out ideally through an objective and fair process.

8. Competitive Pricing. This kind of pricing policy is based on competitors’ prices.

Under this kind of system, the firm will change approximately the same prices as
the competitors, or maybe more depending on its ability to convince consumers to
purchase and patronize its product.

Pricing Approaches

Prices of products and services may be based on any of the various pricing
approaches:

1. Cost based approach

2. Buyer based approach, and

3. Competition based approach

Cost based Approach

The cost based approach in pricing refers to the setting of prices on the basis
of costs. Under this approach the total costs are calculated and a margin of profit is
added. There are two types of pricing under the cost based approach. They are the
following:

[Link] plus pricing, and

2. target rate of return pricing.

Cost plus pricing method calls for adding a percentage of cost on top of the
total cost. The added percentage constitutes the profit margin, while total costs

15
represents the direct costs and the overhead costs. The formula adapted, is as
follows:

Price = direct costs + overhead costs + profit margin where direct costs = materials
+ labor;

Overhead costs = a share of fixed indirect costs;

Profit margin = a fair amount of return

Example:

If direct costs of a certain product is ₱750.00, overhead costs is ₱250.00 and profit
margin is 25% of total cost, the following will be derived:

Price = direct costs + overhead costs + 25% of (direct costs + overhead costs)
= ₱750.00 + ₱250.00 + 25% (₱750.00 + ₱250.00)
= ₱1000.00 + ₱250.00
= ₱1250.00

Buyer Based Approach

The buyer based approach of pricing deals with consumer perceptions or

behavior as bases for determining the selling price of a product or service. This
approach is composed of the following methods:

[Link] value pricing

2. price-quality relationship pricing
3. loss-leader pricing
4. odd-numbered pricing
5. price lining pricing

Perceived Value Pricing

This method establishes the price for a product based on the buyer’s
perceptions of the value of the product or service. Most works of art, like paintings
and sculptures, are sold at prices based on the buyer’s own value analysis. Costs
has a little to do with the selling price.

Price-Quality Relationship Pricing

This approach hinges on the observation that consumers associate high

price with high quality and low quality with low price.

Loss-Leader Pricing

This refers to the practice of setting low prices on selected products which
will result in the generation of less profits, but with the objective of increasing the
sales volume of other products sold by the company.

16
Odd-Numbered Pricing

This refers to the practice of setting price even below peso amounts. An
example is selling at ₱99.50 rather than at flat ₱100. There are good reasons for
this method:

1. At only a 50-centavo difference, ₱99.50 appears to be more attractive to

the prospective buyer than the ₱100 price; and

2. The sales clerk will be forced to give a 50 centavo change prompting him
to enter the sales transactions in the cash register.

Price Lining Pricing

Thus method refers to the practice of selling merchandise at a limited

number of predetermined price levels. The different price levels are intended to
represent various levels of quality. The buyer is then provided with various buying
options increasing his chance of making a purchase. The various models of handy
phones offered for sale at varying prices by manufacturers, like Nokia, Samsung
and Sony Ericsson are examples of price lining pricing in action.

Competition Based Approach

The competition based pricing approach refers to the setting of prices based
on what prices are being charged by competitors. There are two kinds of pricing
under this approach. They are the following:

1. going-rate pricing; and

2. sealed bid pricing

Going-Rate Pricing

Under this pricing method, the firm adapts a price based on the competitor’s
prices. The price adapted may be a little higher or lower that the competitor’s. Less
attention is given to the firm’s own costs and demand.

Sealed Bid Pricing

In sealed bid pricing, the firm sets its price which is thought to be a little
lower than the competitor’s. This happens in biddings where competitors outdo
each other in winning the bid. As in going-rate pricing, less attention is also given
to the firm’s costs and demand.

Now, let’s take a look about the Price Tag Requirement of the Consumer Act
of the Philippines (R.A. 7394) who regulates he pricing of products/services.

Article 81. Price Tag Requirement of the Consumer Act of the Philippines
(R.A. 7394) regulates the following on pricing, it says it shall be unlawful to offer
any consumer product for retail sale to the public without an appropriate price tag,
label of marking publicly displayed to indicate the price of each article and said
products shall not be sold at a price higher than that state therein and without
discrimination to all buyers: provided, That lumber sold, displayed or offered for

17
sale to the public shall be tagged or labeled by indicating their own the price and
the corresponding official name of the wood: provide, further, That if consumer
products for sale are too small or the nature of which makes it impractical to place
a price tag there on price list place up the nearest point where the products are
displayed indicating the retail price of the same may suffice.

Article 82. Manner of Placing Price Tags. Price tags, labels or markings
must be written clearly, indicating the price of the consumer product per unit is
pesos and centavos.

Article 83. Regulation for Price Tags Placement. The concerned

department shall prescribe rules and regulations for the visible placement of price
tags for specific consumer products and services. There shall be no erasures or
alterations of any sort of price tags, labels or markings.

18
 What’s More

Activity 4.

Video presentation about How to Price a Product.

Directions: Watch the video seriously and answer the following guide questions.

Link: [Link]

Guide Questions:

1. What is the video all about?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

2. What are the things to consider in pricing product?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Rubrics:
Areas of 10 8 7 5
Assessment

Ideas Presents ideas Presents ideas Ideas are too

Ideas are
in an original in a consistent general vague or
manner manner unclear
Organization Strong and Organized Some No
organized beg/mid/end organization; organization;
beg/mid/end attempt at a lack
beg/mid/end beg/mid/end
Understanding Writing shows Writing shows a Writing shows Writing shows
strong clear adequate little
understanding understanding understanding understanding
Sentence Sentence Sentence Sentence No sense of
Structure structure structure is structure is sentence
enhances evident; limited; structure or
meaning; flows sentences sentences need flow
throughout the mostly flow to flow
piece

19
 What I Have Learned

Now you already know how to compute the possible price of your
product/services and make your product description. It is a very nice feeling
whenever you have learned something. It makes you proud that today another topic
was tackled and internalized. Let us summarize what we have learned about our
topic.

1. What is the meaning of product?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

2. What are the 3 levels of product?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

3. What are the four general types of products?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

4. How are the products classified?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

5. How do we describe product?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

6. What are the additional information that will help readers describe the product?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

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7. What is the meaning of price?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
8. What are there are several pricing policies that can be adopted by
leading firms in pricing products/services?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
9. What are three approaches in pricing products/services?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
10. What are the three methods used in buyer based approach in pricing
products/services?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Rubrics:
Areas of 10 8 7 5
Assessment

Ideas Presents ideas in Presents ideas in Ideas are too Ideas are
an original a consistent general vague or
manner manner unclear
Organization Strong and Organized Some No
organized beg/mid/end organization; organization;
beg/mid/end attempt at a lack
beg/mid/end beg/mid/end
Understanding Writing shows Writing shows a Writing shows Writing shows
strong clear adequate little
understanding understanding understanding understanding
Sentence Sentence Sentence Sentence No sense of
Structure structure structure is structure is sentence
enhances evident; sentences limited; structure or
meaning; flows mostly flow sentences need flow
throughout the to flow
piece

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 What I Can Do

Let’s Practice!

Activity 5. Let’s Do Business!

Directions: Read the problem carefully and answer the questions that follow, show
your solutions or computations in your notebook.

1. Joana and Julia decided to sell 100 pieces of masks during the CoViD 19 period.
They incur the following costs and other expenses;
Cost of materials – Php 3,000.00
Labor - 1,000.00
Overhead cost - 1,000.00.

a. How will you help them compute the price of their product if they want a profit
margin of 30% of the total cost?
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

b. What advice could you give in making their product description?

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

22
 Assessment

Let’s probe it!

Thumbs up to the job well done! Let’s test what you have learned from our
lesson. Now, I want you to read the instruction carefully and answer each number
correctly.

Test I. Try to recognize me!

Directions: Identify the correct answer and write your answer on the space
provided.
____________________ 1. These products try to claim new space in the mind of the
customer different from the spaces occupied by existing
products.
____________________ 2. These are frequently & immediately bought, low priced and
has many purchase locations. It includes staple goods,
impulse goods and emergency goods.
____________________ 3. These are items that are purchased when a sudden
problem has to be solved.

____________________ 4. Anything that can be offered to a market for attention,

acquisition, use or consumption.

____________________ 5. Sometimes called look-a-like products will not make much

impression on the consumer’s mind.
____________________ 6. These are items for which there are no acceptable
substitute in the consumers’ mind. They possess one or
more unique characteristics where a significant group of
buyers is willing to expend considerable effort to obtain
them.

___________________ 7. These products offer completely new performance benefits.

They may double the performance at half the cost. They
may be much more convenient and easy to use.

____________________ 8. These are items for which buyers are willing to spend
considerable effort in planning and making a purchase,
these products also have fewer purchase locations and buy
less frequent.
____________________ 9. It uses drawings, diagrams and photograph with caption
and labels that help users understand what they are looking
for.

23
____________________ 10. It is the marketing copy that explains what a product is
and why it’s worth purchasing. The purpose of a product
description is to supply customers with important
information about the features and benefits of the product so
they’re compelled to buy.

Test II. Let’s Invest and Earn!

Directions: Read and analyze the problem carefully and answer the following
questions. Show your solutions.

1. Josh and Arvi planned to put up a furniture business particularly tables and
chairs, they incurred the following expenses in making a single product.

a. Table b. Chair
Materials - ₱ 4,000.00 Materials - ₱ 2,000.00

Labor - 2,000.00 Labor - 1,000.00

Overhead Cost - 1,000 .00 Overhead Cost - 500.00

They decided to have a profit margin of 30% above cost for the table and 25% above
cost for the chair.

1. How much is the price of the table and a chair?

____________________________________________________________________________
____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

2. How much is the gain for each table and chair?

____________________________________________________________________________
____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

24
 Additional Activities

Let’s do it at home!

Congratulations! You made it until the end of our lesson. I know you’ve
learned a lot about product and price. Now, for your additional activities, do the
following tasks at home.

Reflection!

Instruction: Answer the following questions based on what you have learned.

1. What did I learn about our topic on product/services? Can I apply these
learnings in the future when I will put up a business?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

2. What are the factors to consider in pricing products? Is my price justifiable?

Could I able to gain profit?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

3. What are the price tag requirements of the consumer Act of the Philippines? Will
it help the consumer? Why?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

25
 26
Assessment (Post)
Test II:
Solution 1:
Price = costs of materials + labor + overhead costs + 30% (direct costs + overhead
costs)
a. Table
= ₱4,000.00 + ₱2,000.00 + ₱1,000.00 + 30% (₱6,000.00 + ₱1,000.00)
= ₱ 7,000.00 + 30% (₱6,000.00 + ₱1,000.00)
= ₱ 7,000.00 + 30% (₱7,000.00)
= ₱ 7,000.00 + ₱2,100.00
= ₱ 9,100.00
b. Chair
= ₱2,000.00 + ₱1,000.00 + ₱500.00 + 25% (₱3,000.00 + ₱500.00)
= ₱3,500.00+ 25% (₱3,000.00 + ₱500.00)
= ₱3,500.00+ 25% (₱3,500.00)
= ₱3,500.00+ ₱875.00
= ₱ 4,375.00
Solution 2:
a. Net Profit for the table = Selling price – Cost
₱ 9,100.00 - ₱ 7,000.00
= ₱ 2,100.00
b. Net Profit for the chair = Selling price – Cost
₱ 4,375.00 - ₱ 3,500.00
= ₱875.00
Answer Key
 27
What I Know What’s In What's New What’s More What I Have
Pre-Assessment Learned
Review Activity 1 Activity 3
1. c Answer may
2. a 1. b Answer may Answer may
2. a vary. vary.
3. d vary.
4. b 3. d
5. c 4. c
6. d 5. d
7. b
8. d
9. b
10. a
11. c
12. d
13. c
14. c
15. b
What I Can Do Assessment (Post)
Activity 4 Test I.
1. Differentiated
Solution A: Products
[Link]
Cost of materials – Php3,000.00 Products
Labor - 1,000.00 3. Unsought Products
Overhead cost - 1,000.00 4. Products/Services
Price = costs of materials + labor + overhead costs + 5. Copycat Products
30% (direct costs + overhead costs) 6. Specialty Products
7. Breakthrough
= ₱3,000.00 + ₱1,000.00 + ₱1,000.00 + 30% Products
(₱4,000.00 + ₱1,000.00) 8. Shopping Products
= ₱
5,000.00 + 30% (₱4,000.00 + ₱1,000.00) 9. Illustrative Visuals
= ₱
5,000.00 + 30% (₱5,000.00) 10. Product Description
= ₱
7,000.00 + ₱1,500.00
= ₱
8,500.00
Answer in B may vary.
References

BPI-Foundation (2016). BPI-Shape Entrepreneurship Resource Book: Makati

City Philippines.

Medina, R. G. (2010). Entrepreneurship and Small Business Management

(2nd Edition): Manila Philippines.

Medina, R. (2011).Principles of Marketing Revised Edition: Manila

Philippines.

Young, F. & Pagoso, C. (2008). Principles of Marketing (1st Edition): Manila

Philippines.

Brightwell,S. (2015). Writing Technical Descriptions. Retrieved from

[Link]
50178324?next_slideshow=1

Duistermaat, H. (2019). 9 Ways to Write Product Descriptions that Inform

and Persuade Your Customers. Retrieved from
[Link]
product-descriptions-that-sell

Hill, W. A. (2016). Importance of Marketing Mix in your Marketing Strategy –

Part 1. Retrieved from [Link]
marketing-mix-your-strategy-part-1-warren-a-hill/

Kosaka K. The Importance of Marketing Mix in your Growth Strategy.

Retrieved from [Link]
Luenendonk, M. (2014). Marketing Mix Place in Four P’s. Retrieved from
[Link]
+place+in+marketing&oq=place+meaning+in+entrepreneurship&gs_lcp=CgZwc3ktY
WIQARgGMgQIABBHMgQIABBHMgQIABBHMgQIABBHMgQIABBHMgQIABBHMgQI
ABBHMgQIABBHUABYAGDFbmgAcAF4AIABAIgBAJIBAJgBAKoBB2d3cy13aXo&scl
ient=psy-ab

28
 DISCLAIMER
This Self-learning Module (SLM) was developed by DepEd – Division of
General Santos City with the primary objective of preparing for and
addressing the new normal. Contents of this module were based on DepEd’s
Most Essential Learning Competencies (MELC). This is a supplementary
material to be used by all learners in General Santos City in all public
schools beginning SY 2020-2021. The process of LR development was
observed in the production of this module. This is version 1.0. We highly
encourage feedback, comments, and recommendations.

For inquiries or feedback, please write or call:

Department of Education – Division of General Santos City

Learning Resource Management System (LRMS)

Tiongson St., Lagao, General Santos City

Telefax No.: (083) 552-8909

Email Address: depedgensan@[Link]

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