1.

PRODUCT

Is the tangible good or the intangible service that the enterprise offers to its customers in order to
satisfy their needs and to produce their expected results.
It is often identified with their brand names to distinguish them from other products in the market.

Types of product

1. Breakthrough products
It offers completely new performance benefits.
They may be much more convenient and easy to use.
They may cater to a unique set of customer needs that have not yet been tapped.
They may create a new demand.
Marketing breakthrough products need a higher level of customer education and orientation.

Examples:Flash Drives, ATM, credit cards, Dengvacia vaccine, glutathione, steroids, etc.

2. Differentiated products
Claim a 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: Downy Isang Banlaw, Surf with fabcon, Toyomansi, PepsiBlue, CokeZero,etc.

3. Copycat products
Will not make much impression on the consumer’s mind.
Has lower prices, easier access, promotional freebies and the like.
Aggressive advertising may add to market demand but at a greater cost than the leading brands.

Examples: Beer na Beer brand of Asia brewery pitted against San Miguel Pale Pilsen.
 4. Niche products
They are products with lower reach, lower visibility, lower prices and lower top of the mind.
They are content to play minor roles in specific and smaller market segments.
Aggressive advertising may add to market demand but at a greater cost than the leading
brands.

Classification of Products
Convenience goods
• Convenience goods are products that consumers buy repeatedly without much thought.
• Once consumers choose their brand of choice, they typically stick to it unless they see a
reason to switch.
Shopping goods
• Shopping goods are products shoppers typically spend more time researching and
comparing before they buy. Unlike convenience goods, these are rarely impulse purchases.
• Shopping goods can be affordable items, like clothes and home decor. For example, if you
have an event coming up and you want to get a nice pair of shoes, this doesn’t fall under
impulse purchases. Instead, you'll want to try it on, consider whether the price is worth it,
and even get input from your loved ones.
Specialty goods
• A specialty good is the only product of its kind on the market. This means consumers don't
usually feel the need to compare and deliberate as much as they would with shopping
products.
• For example, iPhones are a specialty good because of Apple’s strong brand identity, unique
features, and operating system. This combination creates a perception of product quality.

Unsought goods
• Unsought products are goods that people aren't usually excited to buy. These products
have utility, but they're usually not fun purchases.
• Good examples of unsought goods include fire extinguishers, insurance, and refrigerators.
• People often buy unsought goods out of a sense of fear, danger, or utility. For instance, you
wouldn't go online to search for the "new and best" fire extinguisher. You'd only buy one
due to the fear of a potential fire.

2. PRICE - Is the peso value that the entrepreneur assigns to a certain product or service
after considering its costs, competition and target market.

The major factor for the customer in buying a product.

Pricing Strategies:
1. Bundling – this refers to two or more products or service in one reduced price.
Example:
manicure and pedicure for 150.00
 2. Penetration pricing- this refers to setting low prices to increase market share, but the
entrepreneur will eventually increase the price once the desired market share is achieved.
Example:
A mobile app-based transportation service offering reduced booking fee of 15.00 as its
introductory price.

3. Skimming – this is the opposite of penetration pricing where prices are initially high and then
they are lowered to offer the product or service to a wider market.
Example:
A real estate company offering top-tier projects is now offering low-cost housing of same quality to
serve the middle market segment.

4. Competitive Pricing- this refers to benchmarking prices with the competitors.

Example:
Milk tea prices are competitively priced.

5. Product line pricing – this refers to pricing different products or services within a parallel
products array using varying price points.
Example:
LED TV is more expensive than the LCD TV even if under the same brand.

6. Psychological Pricing- this considers the psychology and positioning of price in the
market.
Example:
Price of haircut is at 199 because consumers tend to think that odd prices are lower than
what they are and they tend to round off the price to 100 instead of 200.
 7. Premium pricing – this refers to setting a very high price to reflect elitism and
superiority.
Example:
Prices of signature clothes, bags, perfumes

8. Optional pricing – this refers to adding an extra product or service on top of the original
to generate more revenue.
Example: Meals on top of the airfare

9. Cost-based pricing – the basis of mark-up is the cost of sales.

Example:
The entrepreneur will compute the cost of coconut juice by adding the cost of the coconut
juice (10) and the plastic container (4). He can set the price at 20 to earn 6 per coconut
juice.

10. Cost plus pricing – the mark-up is based on a certain percentage of cost.
Example:
The entrepreneur wants to set a 50% mark-up on the coconut juice cost which is 14 x 50% to 7;
the new price is 14 plus 7 is equals to 21.
3 PLACE

Refers to a location or the medium of transaction. Is a vital factor in the success of a business.

A prime location is a great competitive advantage. To be able to make the right choice of
location, it requires a market survey.

Things Need to Consider:

1. The number of customers residing or working in the area, and the number of customers who
frequently pass through the area.
2. The buying habits of customers or where they buy, at what time and how frequent.
3. Locational features such as parking spaces, foot access, creature comforts, and the like.
4. Image and Location Conditions.
This refers to the physical look of a location, sanitary conditions, crime and safety levels.
The reputation of a location is also important.
5. Exact fit to target customers.
Refers to the location traffic generally composed of your target customers.
6. Clustering of competitor establishments.
7. Future area development.
A certain location might not have the most customers but it might become a central hub within
the next five years.
8. Fiscal and Regulatory Requirements.
An entrepreneur would want to set up shop in a town or city with low tax rates, good governance,
excellent infrastructures and great public services.

4. P R O M O T I O N - It involves presenting the products or services to the public and how

these can address the public needs, wants, problems or desires.
The primary target market should be identified because it will become the main audience.

-The main goal of promotion is to gain ATTENTION.

Business philosophy definition is the set of principles and beliefs that a company is working
toward to achieve success.

STRATEGIES OF PROMOTION
1.Advertising
– this is the type of communication that influences the behaviour of a customer to choose
the product or service of the entrepreneur over the competitors.

The objectives of advertising include the following:

A. informing, educating, and familiarizing the public with the product or service offerings
B. building a trustworthy image; and
C. increasing sales.

5 TYPES OF ADVERTISING
• Print Advertising:
• Broadcast Advertising:
• Outdoor Advertising:
• Digital Advertising:
• Product/Brand Integration/Placement

2. Selling
– This is the act of trading a product or service for a price or a fee. The entrepreneur must identify
the target customers who will likely buy the product or service.

3.Sales promotion
– These are short term promotional gimmicks wherein practical incentives and appealing
activities are incorporated to entice the customers to buy the product or avail of the service.

Here are common examples of sales promotions in the Philippines:

Sales discounts or discount coupons
Raffles
Contest and games
Promo items
Product or service bundles
Trade fairs or exhibits (eg. wedding expo)
Sample distributions or free taste or free trials
Premiums (free toys for fast food meals)
Point-of-Purchase promotions (display stands in grocery store)
Advertising specialties (pens, notebooks, umbrellas, bags, calendars)
Rewards (reward cards)

4.PUBLIC RELATION
–These are image-building initiatives of the entrepreneur to make the name of the business
reputable to stakeholders, such as the target customers, government agencies, business partners,
media and the public.

Examples of PR strategies are as follows:

Press conferences
Launching events
Strong media relations through press kits
Social responsibility events (charitable or community events)
Web public relations (blogs, social media, e-mails, word-of-mouth)

5. P O S I T I O N I N G

Is the way the customers perceive the enterprise and its products or services in their minds.
Enterprise can establish their positioning either by starting with their own product creations or
with their customer’s outcome expectations.
Objectives :
1. Enterprise Perspective
The enterprise scans the market environment and decides to position itself with products
that specifically address the needs of a chosen target market.
2. Competitive Perspective
The enterprise has to differentiate and distinguish itself from its competitors.

3. Customers Perspective.
This is the way the customers perceive its products and services in their minds.

6. P E O P L E

Are the ultimate marketing strategy.

People sell and push the product.
People search hard to find the right market.
People distribute, promote, price and sell the products in the most attractive market
places.
People are the regular contact points between the enterprise and its market.

FOUR LEVELS OF MARKETING EFFORTS:

1. to create customer awareness;
2. to arouse customer interest;
3. to educate customers as they evaluate their buying choices; and
4. to close the sale and deliver the products.

7. PACKAGING

It does not refer only to the wrapper or container of the product.

It can mean the bundle of products or service that are put together to attract and delight
customers.
It can also mean the terms and conditions attached to the sale or after-sale servicing of the
product.
It is the science, art and technology of enclosing or protecting products for distribution,
storage, sale, and use.
It refers to the process of designing, evaluating, and producing packages.
 It can be described as a coordinated system of preparing goods for transport, warehousing,
logistics, sale, and end use. It contains, protects, preserves, transports, informs, and sells.

Importance
1. Identifies the product, describes its features and benefits, and complies with government rules
on specifying its content, weight, chemical composition and potency.

2. It differentiates the product from its competitors and even from its other brand offerings.

3. It lengthens the lifespan, physically protects and extends the usefulness of the product.

Requirements:

1. Product Identity or Name.

The name should distinguish the product from other products of the same type. A sufficient
precise description of the food and of its nature. Product name should not be misleading. The
name prescribed by law.

2. Net Content Declaration.

Expression of the weight, measure or numerical count or a combination of numerical count and
weight of the product inside the package.

3. Ingredients.
Are defined in Article to mean “any substance , including additives, used in the manufacture or
including additives, used in the manufacture or preparation of a foodstuff and still present in the
preparation of a foodstuff and still present in the finished product.

4. Name and Address of Manufacturer, Packer or Distributor

Manufactured by:__________________________________________________________________
Distributed by:__________________________________________________________________
Packed by:___________________________________________________________

5. Country of Origin
Example: Product of the Philippines

6. Production code
The lot identification code/production code shall be embossed or otherwise permanently marked
on immediate individual packages or containers.

7. Open-Date Marking for specific food

It means legibly indicating a date on food labels/packages for the purpose of informing the
consumer about the expected quality of product at a given period of time provided that it has
been properly stored. Consume before/ Best before

8. Barcode.
An article numbering system for increased productivity.

Brand name
A brand name identifies a specific company, product, or service and differentiates it from
similar brands within its category.
Brand name is a business name that helps the customers to recognize and differentiate
a specific product or service from another one.

Types of Brand name

Inventive

These are word without any dictionary meaning

Descriptive
Words used are describing the nature of business or product

Acronym

Acronym stand as a brand name

Generic

Words with proper dictionary meaning but does not describe the product

Founder

Founder name stands as brand name.

Geographic

Connects a brand with a specific location.

Characteristics of a brand name

Unique

Easy to remember

Can describe the benefits of the product or services

Can be converted to other dialects or languages in case the entrepreneur expands to

other territories

Can describe a product category

Can describe concrete qualities

Positive and inspiring