Comprehensive notes on The Marketing Mix (7Ps)

The 7Ps of Marketing is a strategic marketing framework that combines the original 4Ps (product, place, price, promotion) with three additional elements: people, packaging, and positioning. (Attribution: Jerome McCarthy)
Purpose of the 7Ps model:
- Set clear marketing objectives
- Develop marketing strategies and tactics
- Plan a successful product offering

A product is any physical good, service, or idea created by an entrepreneur or innovator to serve customer needs and address their problems.
Three-level concept of products/services:
- Level 1: Core Benefits of the Product or Service
- Level 2: Physical Characteristics of the Product or Service
- Level 3: Augmented Benefits of a Product or Service

Place refers to the physical and human characteristics of a spot on the map. A strategic place depends on the nature of the business and the primary target market.
Place also covers product distribution and the whole business logistics.
Notes from the material emphasize a blend of physical and cyber contexts as part of the marketing mix considerations.

Price is the peso value assigned to a product or service after considering costs, competition, objectives, positioning, and target market.
It is the only P in the 7Ps that generates revenue for the business.

Bundling: Two or more products or services offered together at a reduced price.
Penetration: Setting low prices to increase market share with the plan to raise prices once the desired share is achieved.
Skimming: Initial high prices that are lowered over time to reach a wider market.
Competitive: Pricing aligned with benchmarking against competitors.
Product Line: Pricing different products within a parallel product array using varying price points.
Psychological: Pricing that considers consumer psychology and perceived value.
Premium: Very high prices to reflect elitism and perceived superiority.
Optional: Adding an extra product or service to generate more revenue.
Cost-Based / Cost-Plus: Pricing based on the cost of sales plus a markup.

Variable or controllable costs: These costs are directly proportional to the number of products manufactured or services performed.
Fixed or uncontrollable costs: Costs that are not directly proportional to production or service performance.

Promotion involves presenting products or services to the public and addressing public needs, wants, problems, or desires.
A strong Integrated Marketing Communication (IMC) plan should be devised to deliver compelling messages effectively.
Key promotional messages can include:
- Value proposition or USP (Unique Selling Proposition)
- Product or service image
- Business image
- Business values and philosophy

Advertising: Aimed at influencing customers to choose your product/service. Objectives include:
1) Informing, educating, and familiarizing the public with the product
2) Building a trustworthy image
3) Increasing sales
Advertising tools cited: Television, Radio, Internet, Mobile phones, Print, Out-of-home
Selling: The act of trading a product or service for a price or fee (methods include cold calls, consultative selling, direct selling, persuasive selling).
Sales Promotions (below-the-line promotions): Short-term gimmicks such as discounts, raffles, contests, promo items, bundles, trade fairs, rewards.
Public Relations: Image-building initiatives to make the business reputable (press conferences, launching events, charitable events, blogs, social media).

Manong Taho: Examples of local branding and packaging; price listings included (e.g., 12 oz PHP 39.99; 16 oz PHP 49.99).
Gummy Mints: Similar packaging and pricing (e.g., 12 oz PHP 44.99; 16 oz PHP 54.99).
Social media and e-commerce promotions: Examples include Instagram/Facebook handles and promotional posts.
Shopee 12.12 Birthday Sale page: Illustrates discounting, free shipping offers, and coupon-based promotions.
ABS-CBN Foundation and other brand promotions: Demonstrates cause-related marketing and fundraising messaging (e.g., donation prompts during global crises).

People play a vital role in servicing customers, even when the entrepreneur sells physical goods.
Focus on the role of human resources in propelling business growth.
Direct, personal interactions involve people who produce the product or service.
CRM (Customer Relationship Management): Philosophy and set of strategies, programs, and systems focused on identifying and building customer loyalty (valued customers).
Contract: An agreement between two or more parties creating an obligation to do or not do something in exchange for money or other consideration.

Packaging is how the product or service is presented to customers; it is the overall identification of the product or service.
Servicescape (concept by Boom & Bitner): The environment in which a service is delivered.

Product packaging design refers to the exterior design of a product.
Product labeling is important for protection of goods and safety in handling.
Design questions when packaging a product:
1) What is the product?
2) Who is buying the product?
3) How are people buying the product?

The slides include sample brand templates and nutrition labels to illustrate how packaging communicates information and brand value.
Example pages show nutrition facts templates, barcodes, logos, ingredients, and packaging size indicators.

Positioning defines where your product stands relative to competitors in the marketplace and in the minds of consumers.
Five main positioning strategies presented:
1) Positioning based on product characteristics
2) Positioning based on price
3) Positioning based on quality or luxury
4) Positioning based on product use or application
5) Positioning based on competition

Fast food competitors in a market: KFC, Pizza Hut, Burger King, McDonald's, Subway, In-N-Out, Wendy's, etc., illustrating how brands occupy different positions (wide vs limited choice, health orientation, etc.).
Attributes influencing positioning include innovativeness, ethical/environmental accountability, affordability, quality/product, and diversity/health.

A brand is the name or symbol associated with a product or service that communicates messages to target customers.
The brand message is channeled through advertising, distribution, and packaging.
A strong brand name evokes positive images or emotions in consumers and becomes valuable.

Standard procedures or systems cover internal and external marketing-related activities.
Ways to start process improvement include:
- Elimination of waste
- Reduction of costs
- Improvement of communication and collaboration

Suppliers (raw materials) → Manufacturing (e.g., coffee shop scenario with Manong Tahonho)
Market (consumers) as the end customers
A simple coffee shop process:
- Customer enters the coffee shop
- Waiter asks for the order
- Waiter hands the order to the barista
- Barista makes the beverage according to order
- Waiter serves the beverage to the customer

A brand’s value lies in its ability to convey messages to target customers and evoke desirable perceptions.
Brand communication occurs through multiple channels (advertising, packaging, distribution) to shape consumer associations.