The document discusses the 7Ps marketing mix model which expands on the original 4Ps of marketing (product, price, place, promotion) by adding people, packaging, and process. It explains each of the 7Ps and provides examples of factors to consider under each P, such as suitable locations, pricing strategies, promotional tools, necessary employee roles, attractive packaging, and efficient business processes. The goal of the 7Ps framework is to effectively meet customer needs and wants while achieving profitability through an optimal combination of these marketing elements.

2. • It is a widely accepted strategic marketing tool that
combines the original 4Ps with the additional 3Ps in
formulating marketing tactics for a product or service.
• Under the Marketing Mix are the 7Ps of marketing,
which are the product, place, price, promotion, people,
packaging, and process.

3. • It is about finding the right combination that will mostly
effectively serve the customers needs and wants at the
same time achieve the profitability objective.
• 4 Ps (originals)
- were used in marketing products or physical goods
only, however these are not applicable to
marketing services.
• 3 Ps (additional)
- Also applicable in marketing products were
introduce.
• The 7Ps model is use to the following:
- conduct a situation analysis to set objectives
- conduct a strength, weaknesses, opportunity and

4. - to come up with marketing strategies and tactics.
• A challenge to a budding entrepreneur is to ask the
following key questions onset:
Product
- What location is best suited for the business?
- Where are the places that has more potential
customers?
- Can they conveniently transact on-site or online?
- How is the process of distribution of products or
performance of service?
Price
- What is the most appropriate price?
- What pricing strategies will be used for the target
customers?

5. Promotion
- What is the most effective advertisement or
combination of
advertisement?
- Which advertising tool should be used to drive
awareness
and increase sales?
People
- What type of people used to be hired?
- What are the basic skills needed for the job?
- What leadership style will be applied by the
entrepreneur?
Packaging
- What is the best packaging for the product that is
attractive enough to customers and co-efficient at the
same time?

6. Processing
- What is the most compelling feature of the product or
the business that will make difference in the lives of
the customers?
- What sets the product or service from the rest?

8. • A product is any physical good, service, or idea
that is created by an entrepreneur or an
innovator in serving the needs of the customers
and addressing their existing problems.
• The product or service should not be created
before finding the right customers, because this
is very risky and resources and time might be put
to waste.

9. • Refers to a location or the medium of the
transaction.
• Place also covers the product distribution and the
whole business logistics.
• Major objectives of PLACE:
- for place is to provide customers with pleasant
experience in buying the product or availing of the
service so that they will keep on coming back
whether on-site or online.
- the place should be (whether on-site or online)
presentable, appealing and catchy.

10. • The three-level concept of products or services
summarizes the reasons that a customer decides to buy
a product or avail of a service.
Level 1: Core benefits of the Product or Service
- The core benefits of a product or service are the major
factors why a customers buys a product or avails of a
service.
Level 2: Physical characteristics of the product or Service
- once the core benefits has been satisfied and options
are available to the customers, the tendency is to look for
the second layer of section.
Level 3: Augment Benefits of a Product or Service
- Augment benefits are only additional benefits; a
customer will still get the core benefits of a product or
service even without the augment benefits. However, in
case of common products and services where there are
number of competitors, the differentiator comes from the
physical characteristics or physical evidence, the
customers experience, or the augmented benefits.

11. • Criteria for choosing the right location:
- suitability to the target market
- condition of the neighborhood
- potential of the area for future developments, laws
and regulations in the area.
- direct and indirect competitors
- foot traffic
- cost of doing business

12. • Price is the peso value that the entrepreneur assigns to
certain product or service after considering its cost,
competition, objectives, positioning, and target market.
It is the only P in the 7Ps that generates profit for the
business.
• Here are the most common pricing strategies:
1. Bundling
2. Penetration Pricing
3. Skimming
4. Competitive pricing
5. Product line pricing
6. Psychological Pricing
7. Premium pricing

13. The entrepreneur must follow these general pricing
guidelines to make the business sustainable and
thriving:
1. Do not price the product or service below its
cost.
2. Monitor competitors’ prices, and ensure that
your prices are at par with them unless the product
or service is really way superior to the
competitors.
3. Align prices strategies that are relevant to your
market segment.
4. Align prices with your business objectives.

14. 8. Optional Pricing
9. Cost-based pricing
10. Cost plus pricing
• The profit of an entrepreneur can be determine
only if there is proper computation of cost
associated with the product or service. There are
two classifications of cost.
1. Variable cost or controllable costs – this cost
are directly proportional to the number of products
manufactured or to the number of services
performed.
2. Fixed cost or uncontrollable costs – These are
costs not directly proportional to the manufacturing
of the product or to the performance of the service.

15. • Involves presenting the products or services to the
public and how these can address the public
needs, wants, problems, or desires.
• These are the four marketing messages for
promotion:
1. Value proposition or unique selling proposition of
the product or service
2. Product or service image
3. Business image
4. Business values and philosophy

16. The entrepreneur can choose one or combination
of promotional tools:
1. advertising
2. selling
3. sale promotion
4. public relation

17. • In todays marketing arena, people play a vital role in
servicing customers even though the entrepreneur
sells only physical goods.
• With the influx of various competing products and
services, one of the major differentiators is how
people or employees make difference in the lives of
the customers.
• When the need arises to hire people, he or she must
identify the specific, necessary job roles of
employees and their descriptions, so they will be
able to know their purpose clearly and serve
customers well.

18. • Packaging is how the product or service is presented
to customers. It is the overall identification (look and
feel) of the product or service. This will determine the
uniqueness of the product from competitors. This is
the first element that customers see because they
don’t know what’s inside yet.
• Packaging's ultimate goal is to entice customers to
purchase the product or service. Thus, the
entrepreneur should focus on pleasing the
customers’ eyes. It is not just limited on the product
or service alone, but on its totality, including it
accessories, after sales service, and warranty.

19. • Process is the last addition in the market mix as
marketers began to realize the importance of the internal
and external operations of the business to serve
customer better.
• Its component include input, throughput, and output. The
internal process includes the back-office operations
(preprocessing, processing, and post processing)
wherein employees or machines process customers’
request without necessarily being seen by the customer.
The external process includes the actual servicing where
customers are part of the process.