Entrep12 q1 m5 7p S of Marketing and Branding
Entrep12 q1 m5 7p S of Marketing and Branding
Module 5
Entrepreneurship – Grade 12
Alternative Delivery Mode
Quarter 1 – Module 5
Second Edition, 2021
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Management Team:
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Entrepreneurship
Quarter 1 – Module 5
7 P’s of Marketing and
Branding
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Introductory Message
Have you ever dreamed of becoming the next multi-millionaire? If you’re thinking that winning
the lottery is the only way to become one, well, think again. It is not chance that gives you
millions, instead being a millionaire is a result of hard work and determination. Starting your own
business is a good beginning towards fulfilling your dreams. Entrepreneurship is the way!
You may often hear the word entrepreneur and entrepreneurship. But what do these terms
mean? You may refer to an entrepreneur as the person managing the business and
entrepreneurship as the business venture. Some may say there is no difference.
So, what does this module provide you towards reaching your dreams?
1. It outlines the concepts and basic principles, and processes of developing a business plan.
2. It helps you understand the environment and market in your locality as a factor in developing a
business concept.
3. It allows you to experience starting and operating your own business.
1. What I Need to Do – the part used to introduce the learning objectives in this module.
2. What I Know – this is an assessment as to your level of knowledge to the subject matter at hand,
meant specifically to gauge previous knowledge.
3. What’s In – the part used to connect your previous learning with the new lesson.
4. What’s New – the part used to introduce new lesson through a story, an activity, a poem, song,
situation or activity.
5. What is It – the part that will help you discover and understand entrepreneurial
concepts.
6. What’s More – the part that will help enrich your learnings of entrepreneurial concepts.
7. What I Have Learned – the part that will help you process what you have learned In the lesson.
8. What I Can Do – the part that allows you to apply what you have learned into real life situations.
9. Assessment – the part that evaluates your level of mastery in achieving the
learning objectives.
10. Additional Activities – the part that enhances your learning and improves your
mastery of the lesson.
What I Need to Know
This module provides context and foundational knowledge. It is divided into two
lessons.
Lesson 1 The Marketing Mix (7P’s) in Relation to the Business Opportunity
CS_EP11/12ENTREP-0h-j-10
Lesson 2 Developing a Brand Name
CS_EP11/12ENTREP-0h-j-11
You have started discovering a new world – the world of business. Who knows,
one day you may grow into one of the successful entrepreneurs in our country that our
country can be proud of. However, you have to:
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What I Know
Before you start studying this module, take the following test to find out how much
you already know about this topic. Let’s check your prior knowledge, skills, and
understanding of basic concepts related to the seven P’s in the Marketing Mix and
Branding. This will guide you in understanding the concept.
Now, are you ready? Before proceeding, let’s see what you already know. This
test is particularly prepared to determine your prior knowledge of the lessons you are
about to encounter.
Multiple Choice
Direction: Encircle the letter of the best answer. Write your answers in your activity
notebook.
1) It is a set of controllable and interrelated variables composed of product, place,
price and promotions that a company assembles to satisfy a target group better
than its competitor.
a. Price b. Marketing Mix c. Product d. Packaging
2) The amount that a customer pays for to enjoy it.
a. Price b. Marketing Mix c. Product d. Packaging
3) An item that is produced to satisfy the needs of a certain group of people.
a. Price b. Marketing Mix c. Product d. Packaging
4) It is a tangible product. Its example includes tires, MP3 players, clothing and etc.
a. Branding b. Positioning c. Goods d. Place
5) It can be intangible or tangible as it can be in the form of services or goods.
a. Price b. Marketing Mix c. Product d. Packaging
6) The way your product or service appears from the outside.
a. Price b. Marketing Mix c. Product d. Packaging
7) A marketing model that modifies the 4Ps model.
a. Packaging b. 7 P’s Model c. Marketing Mix d. People
8) Responsible for every element of your sales, marketing strategies, and activities.
a. Packaging b. 7 P’s Model c. Marketing Mix d. People
9) This refers to how a business creates awareness in the market.
a. Place b. Brand Name c. Services d. Promotion
10) It is intangible. Its example includes hair salons and accounting firms.
a. Place b. Brand Name c. Services d. Promotion
11) This is the ultimate marketing strategy.
a. 7 P’s Model b. Marketing Mix c. People d. Branding
12) This is where your product or service is actually sold.
a. Place b. Brand Name c. Services d. Promotion
13) The place occupied by products in the heart and minds of the consumers.
a. Branding b. Positioning c. Goods d. Place
14) A name, symbol, or other feature that distinguishes a seller's goods or services in
the marketplace.
a. Brand Name b. Positioning c. Branding d. Place
15) A powerful and sustainable high-level marketing strategy used to create or
influence a brand.
a. Brand Name b. Positioning c. Branding d. Place
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Lesson The Marketing Mix (7P’s) in Relation to
1 the Business Opportunity
What’s In
What’s New
Find the P’s
Directions: Think of words or terms related to the topic that starts with letter “P”
and find the words in the grid horizontally, vertically, or diagonally. Write the Words or
Terms on the space provided and write something about the term using your own
words. Write your answers in your activity notebook.
1.
2.
3. __________________
4.
5. __________________
6. __________________
7.___________________
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What is It
Whatever you sell or offer you must outline your marketing mix. Marketing mix
has been around as early as trade existed and that is quite long already. The only
difference is that today everything is well outlined and keeps evolving even further. To
get to the point, marketing mix is a business mechanism used for effective marketing
of the products. There is no hesitation that anyone would benefit from a powerful 7Ps.
Marketing Mix is a set of controllable and connected variables that a company gathers
to satisfy a customer better than its competitor. It is also known as the “Ps” in
marketing. Originally, there were only 4Ps but the model has been continually modified
until it became 7P’s. The original 4 P’s stands for product, place, price and promotion.
Eventually, three elements have been added, namely: people, packaging and
positioning to comprise the 7 P’s.
1. PRODUCT
The first P in the Marketing Mix is the Product. Marketing strategy typically
starts with the product. Marketers can’t plan a distribution system or set a price if they
don’t know exactly what the product will be offered to the market.
Product refers to any goods or services that is produced to meet the consumers’
wants, tastes and preferences. Examples of goods include tires, MP3 players, clothing
and etc. Goods can be categorized into business goods or consumer goods. A buyer
of consumer goods may not have thorough knowledge of the goods he buys and uses.
Examples of services include hair salons and accounting firms. Services can be
divided into consumer services, such as hair styling or professional services, such as
engineering and accounting.
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GOODS
A. CONSUMER GOODS
B.BUSINESS GOODS
PRODUCT
SERVICES
• A. CONSUMER SERVICES
• LAWN CARE
• HAIR STYLING
• B. PROFESSIONAL
SERVICES
• ENGINEERING
• ACCOUNTING
• CONSULTANCY
The demand for consumer goods is a The demand for business goods is a
'direct demand'. 'derived demand'. It is derived from the
demand for consumer goods, which are
made using the business goods.
The number of buyers is great. Business goods have only limited number
of buyers.
The buyers are found scattered in The buyers are found to be concentrating
different parts of the country / world. in certain regions only.
Each purchase will generally be of Each purchase involves a very high
small value. amount (in money terms).
Buying is much influenced by Buying cannot be influenced by emotions.
emotions.
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After-sale service is important in the After-sale service is of paramount
case of consumer durables. importance in the case of all business
goods.
There are a number of middlemen in The manufacturers of industrial goods
the market. supply directly to their customers.
A buyer of consumer goods may not A buyer of industrial goods must have
have thorough knowledge of the complete knowledge of the goods he buys
goods he buys and uses. and uses.
The reputation of the seller or The reputation of the manufacturer is
manufacturer may not always be always important in buying industrial
given importance in buying consumer goods.
goods.
Inducements to the buyers in the Such inducements may not be common in
form of cash discounts, free gifts, etc. the marketing of industrial goods.
are made always by those marketing
consumer goods.
The market for consumer goods is The market for industrial goods is affected
affected by fashion and style by technological changes.
changes.
2. PLACE
Place is the second P in the Marketing Mix. Place represents the location
where the buyer and seller exchange goods or services. It is also called as the
distribution channel. It can include any physical store as well as virtual stores or online
shops on the Internet.
It is one thing having a great product, sold at an attractive price. But what if:
• Customers are not near a retailer that is selling the product?
• A competing product is stocked by a much wider range of outlets?
• A competitor is winning because it has a team of trained distributors or sales
agents who are out there meeting customers and closing the sale?
Place matters for a business of any size. It is a crucial part of the marketing mix.
The main function of a distribution channel is to provide a link between production and
consumption.
STAGES OF DISTRIBUTION CHANNEL
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Channel 1 contains two stages between producer and consumer - a wholesaler and a
retailer. A wholesaler typically buys and stores large quantities of several producers'
goods and then breaks into bulk deliveries to supply retailers with smaller quantities.
For small retailers with limited order quantities, the use of wholesalers makes
economic sense.
Channel 2 contains one intermediary. In consumer markets, this is typically a retailer.
A retailer is a company that buys products from a manufacturer or wholesaler and sells
them to end users or customers. In a sense, a retailer is an intermediary or middleman
that customers use to get products from the manufacturers.
Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels.
In this case the manufacturer sells directly to customers.
3. PRICE
The third P in the Marketing Mix is price. The price is a serious component of the
marketing mix. What do you think is the meaning of Price?
In the narrowest sense, price is the value of money in exchange for a product or
service. Generally speaking, the price is the amount or value that a customer gives up
to enjoy the benefits of having or using a product or service. Thus, customers
exchange a certain value for having or using the product – a value we call price. In
commerce, price is determined by what (1) a buyer is willing to pay, (2) a seller is
willing to accept, and (3) the competition is allowing to be charged. With product,
promotion, and place of marketing mix, it is one of the business variables over which
organizations can exercise some degree of control. One example of a pricing strategy
is the penetration pricing. It is when the price charged for products and services is set
artificially low in order to gain market share. Once this is attained, the price can be
higher than before. For example, if you are going to open a Beauty Salon, you need
to set your prices lower than those of your competitors so that you can penetrate the
market. If you already have a good number of market share then you can slowly
increase your price.
There are several factors that affect a small business’ revenue potential. One of
the most important is the pricing strategy utilized by you as the owner of the business.
A right pricing strategy helps you define the particular price at which you can maximize
profits on sales of your product or service. You need to consider a wide range of factors
when setting prices of your offerings. The different pricing strategies with its definition
can be found in the table below.
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The Different Pricing Strategies and Its Definition
Pricing Definition
Strategies
Penetration The price charged for products and services is set artificially low in order
Pricing to gain market share. Once this is achieved, the price is increased.
Skimming A company charges a higher price then slowly lowers the price to make
Pricing the product available to a wider market because it has a considerable
competitive advantage. However, the advantage tends not to be
sustainable. The high price attracts new competitors into the market, and
the price inevitably falls due to increased supply.
Competition A pricing method in which a seller uses prices of competing products as a
Pricing benchmark instead of considering own costs or the customer demand. In
reality a firm has three options and these are to price lower, price the same
or price higher than competitors
Product Line The practice of reviewing and setting prices for multiple products that a
Pricing company offers in coordination with one another. Rather than looking at
each product separately and setting its price, product-line pricing
strategies aim to maximize the sales of different products by creating more
complementary, rather than competitive, products. If you offer more than
one product or service, consider the impact that one product's or service's
price will have on the others.
Bundle The act of placing several products or services together in a single
Pricing package and selling for a lower price than would be charged if the items
were sold separately.
Premium Setting the price of a product higher than similar products. The goal is to
Pricing create the perception that the products must have a higher value than
competing products because the prices are higher.
Psychological Psychological pricing is the practice of setting prices slightly lower than
Pricing rounded numbers, in the belief that customers do not round up these
prices, and so will treat them as lower prices than they really are. This
practice is based on the belief that customers tend to process a price from
the left-most digit to the right, and so will tend to ignore the last few digits
of a price.
Optional The company earns more through cross-selling products along with a
Pricing basic core product. The main product does not have many features (and
is priced low) which can be enhanced through optional or accessory
products which are sold at premium by the same company.
Cost Plus Cost plus pricing involves adding a markup to the cost of goods and
Pricing services to arrive at a selling price. Under this approach, you add together
the direct material cost, direct labor cost, and overhead costs for a
product, and add to it a markup percentage in order to derive the price of
the product.
Cost Based A pricing method in which a fixed sum or a percentage of the total cost is
Pricing added (as income or profit) to the cost of the product to arrive at its selling
price.
Value Based A price-setting strategy where prices are set primarily on consumers'
Pricing perceived value of the product or service.
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4. PROMOTION
Promotion is the fourth P in the Marketing Mix. Promotion refers to the complete
set of activities, which communicate the product, brand or service to the user. The idea
is to create an awareness, attract and induce the consumers to buy the product, in
preference over others. The following are the most common medium in promoting a
product and this is called promotional mix.
PROMOTIONAL MIX
1. ADVERTISING
• Radio
Advertising by means of radio gives the advantage of selecting the territory and
audience to which the message is to be directed. It is also cheaper than TV advertising.
• Television
This is the latest and the fast-developing medium of advertising and is getting
increased popularity these days. It is more effective as compared to radio as it has the
advantages of sound and sight. On account of pictorial presentation, it is more
effective and impressive and leaves a lasting impression on the mind of the viewer.
• Print
The print media carry their messages entirely through the visual mode. These
media consist of newspapers, magazines and direct mail.
• Electronic
You can also advertise electronically through your company website and provide
important and pertinent information to clients and customers. You can protect some
parts of your website through passwords and give access to member customers. You
can also send advertisements via direct e-mail as part of your promotional strategy.
• Word of Mouth
Word-of-mouth advertising is important for every business, as each happy
customer can steer dozens of new ones your way. And it's one of the most credible
forms of advertising because a person puts their reputation on the line every time they
make a recommendation and that person has nothing to gain but the appreciation of
those who are listening.
• Generic
The promotion of a particular commodity is without reference to a specific
producer, brand name or manufacturer. Producers join together to expand total
demand for the commodity, thereby helping their own sales. These activities are often
self-funded through assessments on marketing called check-off programs.
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2. PUBLIC RELATIONS OR PR
In public relations, the article that features your company is not paid for. The
reporter, whether broadcast or print, writes about or films your company as a result of
information he or she received and researched.
3. PERSONAL SELLING
Personal selling occurs when an individual salesperson sells a product, service
or solution to a client. Salespeople match the benefits of their offering to the specific
needs of a client. Today, personal selling involves the development of longstanding
client relationships.
4. SALES PROMOTIONS
Sales promotion is any initiative undertaken by an organization to promote an
increase in sales, usage or trial of a product or service (i.e., initiatives that are not
covered by the other elements of the marketing communications or promotions mix).
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• Customer Contests
Contests offer the customer a chance to win prizes like cash or store
merchandise.
• Special Pricing
Special pricing is used to offer consumers a lower price for a period of time or to
purchase in multiple quantities. For example, a retailer may offer a product that
normally costs 35 pesos at a price of 3-for-100-pesos during the promotional period.
5. DIRECT MARKETING
Direct marketing is a promotional method that involves presenting information
about your company, product, or service to your target customer without the use of an
advertising middleman. It is a targeted form of marketing that presents information of
potential interest to a consumer that has been determined to be a likely buyer.
5. PEOPLE
The fifth P in the Marketing mix is People. Your team, the staff that makes it
happen for you, your audience, and your advertisers are the people in marketing. This
consist of each person who is involved in the product or service whether directly or
indirectly.
People are the ultimate marketing strategy. They sell and push the product.
People are one of the most important elements of the marketing mix today. This is
because of the remarkable rise of the services industry. Products are being sold
through retail channels today. If the retail channels are not handled with the right
people, the product will not be sold. Services must be first class nowadays. The people
rendering the service must be competent and skilled enough so that that the clients
will patronize your service. The marketing efforts of people are to create customer
awareness, to arouse customer interest, to educate customers, to close the sale and
to deliver the product.
Therefore, the right people are essential in marketing mix in the current marketing
scenario.
6. PACKAGING
Packaging is the sixth P in the Marketing Mix. Packaging is a silent hero in the
marketing world. Packaging refers to the outside appearance of a product and how it
is presented to the customers. The best packaging should be attractive enough and
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cost efficient for the customers. Packaging is highly functional. It is for protection,
containment, information, utility of use and promotion.
1) Protection:
One of the major functions of packaging is to provide for the effects of time and
environment for the natural and manufactured products. The protection function can
be divided into some classes.
A. Natural deterioration:
It is caused by the interaction of products with water, gases and fumes, microbiologic
organisms like bacteria, yeasts and molds, heat, cold, dryness, contaminants and
insects and rodents.
B. Physical protection:
The packaging is also used for physical protection, which include improving shock
protection, internal product protection and reducing shock damage caused from
vibration, snagging, friction and impact.
C. Safety:
A special kind of protective packaging is required for products that are deemed harmful
to those who transport them or use them. These products include extremely
inflammable gas and liquid, radioactive elements, toxic materials etc. The packaging
should also be done so that children could not easily use or dispose them.
D. Waste reduction:
Packaging also serves to reduce the amount of waste especially in case of food
distribution.
2) Containment:
This involves merging of unit loads for shipping. It starts with spots of adhesives on
the individual shippers that stick them together, straps of steel and plastic, entire
coverings of shrinkable or stretchable plastic films and paper or corrugated wraps that
surround an entire pallet of product.
There are some special bulk boxes or pallet bins made from unusually strong
corrugated board or fabricated form plastics or metal, the method of which depends
on the type and weight of product and its protective needs. The cargo containers made
of aluminum used to hold many pallet loads of goods can be transferred to or from
ships, trains and flatbed trucks by giant cranes.
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3) Information:
The packaging conveys necessary information to the consumers. The common
information that packaging provides include general features of the product,
ingredients, net weight of the contents, name and address of the manufacturers,
maximum retail price (MRP).
4) Utility of use:
The convenience packaging has been devised for foods, household chemicals, drugs,
adhesives, paints, cosmetics, paper goods and a host of other products. This type of
packaging includes dispensing devices, prepackaged hot metals, and disposable
medical packaging.
5) Promotion:
Companies use attractive colors, logos, symbols and captions to promote the product
that can influence customer purchase decision.
Packaging Decisions:
i. Packaging concept:
This defines what the package should be or do for the particular product in terms of
size, shape, materials, color, text, and brand mark and tamperproof ability
v. Consumer tests:
This is to ensure favorable consumer response
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7. POSITIONING
Communicat
e and deliver
Define your on the
positioning positioning
Choose strategy strategy
competitive
Identify your advantages
competitive that define
Confirm your advantages your market
understanding “niche”
of market
dynamics
At the start of the positioning process, you need a firm understanding of your target
market and answers to the following questions:
In which product, service, or market category (also called the “frame of reference”) do
you plan to use this positioning?
Which target segment is your focus for the positioning you are developing?
What factors do these buyers evaluate when they make a purchasing decision?
How do these buyers view your competitors in the category?
If you don’t have answers to these questions, you should consider conducting formal
or informal marketing research to reach a better understanding of your target market
and the market dynamics around it.
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Step 2: Identify Your Competitive Advantages
Price: Something in your production process or supply chain may make it possible for
you to provide comparable value at a lower cost than competitors.
Features: You may provide tangible or intangible features that your competitors do
not: for example, more colors, better taste, a more elegant design, quicker delivery,
personalized service, etc.
Benefits: You may provide unique benefits to customers that your competitors cannot
match. Benefits are intangible strengths or outcomes your customer gets when they
use your offering. For example, time savings, convenience, increased control,
enjoyment, relaxation, more choices, feeling better about oneself, being more
attractive, etc.
Create a list of the things that make you different from competitors in positive ways.
Then identify which of these factors are also competitive advantages: the influential
factors that help you perform better in the marketplace and cause customers to choose
your product, service, or brand over other options.
Create a positioning statement that will serve to identify your business and how you
want the brand to be perceived by consumers.
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2. Identify current market position
Identify your existing market position and how the new positioning will be
beneficial in setting you apart from competitors.
Lesson
Developing a Brand Name
2
We are now in the second lesson of this module. After studying and
understanding the framework of the Marketing Mix which is the 7 P’s of Marketing, you
are now ready to develop your Brand Name.
What comes to your mind when you hear the word “coffee”? How about “milk”?
When you are asked to name a “toothpaste” or a “soft drinks, what will you think and
say first?
Now as a future entrepreneur, how do you describe the sales of your product
being displayed on the shelves of various malls and groceries beside the product with
a brand name? Do you think the consumers will notice or remember it? Branding will
ultimately reside(s) in the mind of every consumers, thus, it plays a significant role in
every business.
Brand Name is a name, symbol, or other feature that distinguishes a seller's
goods or services in the marketplace. Your brand is one of your greatest assets
because your brand is your customers' over-all experience of your business. Brand
strategy is a long-term design for the development of a popular brand in order to
achieve the goals and objectives. A well-defined brand strategy shakes all parts of a
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business and is directly linked to customer needs, wants, emotions, and competitive
surroundings.
Experts believe that a good brand can result in better loyalty for its customers, a
better corporate image and a more relevant identity.
1) Purpose
"Every brand makes a promise. But in a market in which customer confidence is
little and budgetary observance is great, it’s not just making a promise that separates
one brand from another, but having a significant purpose," (Allen Adamson).
How can you define your business purpose? According to Business Strategy
Insider, purpose can be viewed in two ways:
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3) Emotion
There should be an emotional voice, whispering "Buy me". This means you allow
the customers to have the chance to feel that they are part of your brand.
You should find ways to connect more deeply and emotionally with your
customers. Make them feel part of the family and use emotion to build relationships
and promote brand loyalty.
4) Flexibility
Marketers should remain flexible too in this rapidly changing world. Consistency
targets at setting the standard for your brand, flexibility allows you to adjust and
differentiate your approach from your competition.
5) Employee Involvement
It is equally important for your employees to be well versed in how they
communicate with customers and represent the brand of your product.
6) Loyalty
Loyalty is an important part of brand strategy. At the end of the day, the emphasis
on a positive relationship between you and your existing customers sets the tone for
what potential customers can expect from doing business with you.
7) Competitive Awareness
Do not be frightened of competition. Take it as a challenge to improve your
branding strategy and craft a better value in your brand.
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What’s More
A. Draw to Survive
Direction: Create a Concept Map for the 7 P’s of Marketing Mix. Create your Concept
Map in your activity notebook.
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B. My Imaginary Product
Draw your product and give it a name. Follow the task guide bellow. Draw it in your
activity notebook. Then, write a short explanation by describing the product and why
you come up with its name.
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Here are some useful phrases that may help you with your tasks and explanations:
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Generalization
You have learned a lot from this module. You already understand all the concepts
from the 7 Ps in the Marketing Mix to Developing a Brand Name.
Marketing mix constitutes of the 7P’s in the case of products – product, price,
place and promotion. In case of services, it constitutes of 3 more P’s – people,
packaging and positioning.
All P's should be compatible in the marketing mix. The price is compatible with
the product's placement. The product must be consistent with the promotion. In
general, all P 's are connected intrinsically.
As a result, when you make a marketing mix, it becomes a chain of strong bonds.
Then these connections will lead you to lengthen the chain. Whenever you plan to add
or change existing features, you need to see the general image which helps create a
fresh product in the marketing mix.
Branding is absolutely critical to a business because of the overall impact it
makes on your company. Branding can change how people percept your brand, it can
drive new business further and increase brand awareness.
Am I Important?
Let’s go deeper! Write the importance of each lesson in your life as a future
entrepreneur? Write your answers in your activity notebook.
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What I Can Do
PICTURE 2
PICTURE 3
PICTURE 4
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Post Assessment
Identification
Write the word or phrase that is being described or completes the thought of each
statement.
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Additional Activities
The Power of Color!
Below are different colors. Think of a particular product or company that you can
identify with each color. Write your answers in the box beside each color.
RED- ex.CHOWKING
BLUE-
BLACK-
YELLOW-
ORANGE-
GREEN-
This is the end of Module five (5). You did a great job! It is Indeed an
achievement. Congratulations!!! Hard work pays off and you really proved it!!! Try to
learn more about Entrepreneurship in the next Modules. Thank you for being patient,
honest, and committed.
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QUARTER CHALLENGE 1
Instructions: Recall what you learned. Shade or darken the letter that corresponds
to the BEST answer. There is only one BEST answer for each
question.
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O O O O 11. The following are the forces competing within the industry except
one, which one is it?
A. Potential new entrants and Substitute Products
B. Buyers and Suppliers
C. Rivalry among existing firms
D. Needs and Wants
O O O O 12. They are the ones that provide something that is needed or wanted.
A. Buyers C. Buyers
B. Competitors D. Sellers
O O O O 13. It refers to the physical environment, societal environment, and
industry environment where the business operates.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame
B. External Environment D. Entrepreneurial heart frame
O O O O 14. They are the ones who enter something.
A. Buyers C. Suppliers
B. new entrants D. Sellers
For questions 15 to 16 refer to the following statements:
A. Substantial capital requirement
B. Substitute products are not readily available in the market
C. Difficulty in accessing distribution channels
D. The product or service is unique
E. Characteristics of the products or services
F. Increased capacity
O O O O 15. In Potential New Entrants the intensity of its threat will be affected by
the presence of the following barriers.
A. A and C C. A only
B. A, B, C and D D. All of the above
O O O O 16. In rivalry among existing firms, the industry is attributable to the
following factors.
A. E and F C. A and B
B. A, B, C and D D. All of the above
O O O O 17. Which of the following includes the industry environment of the
business?
A. Competitors C. Creditors
B. Customers D. All of the above
O O O O 18. It is the process of considering, evaluating, and pursuing market-
based activities that are believed to be advantageous for the firm.
A. Opportunity seeking C. Opportunity screening
B. Opportunity seizing D. Sources of opportunity
O O O O 19. This is essential to opportunity-seeking which allows the
entrepreneur to see things in a positive and optimistic light in the
midst of crisis or difficult situations.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame
B. Entrepreneurial gut game D. Entrepreneurial heart frame
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O O O O 20. It is the ability of entrepreneur that can sense without using the five
senses, also known as intuition.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame
B. Entrepreneurial gut game D. Entrepreneurial heart frame
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O O O O 29. ________________ will determine the entrepreneur’s possible
customers in one locality.
A. Market design C. Market strategy
B. Market size D. Market research
O O O O 30. The following are variables to consider in behavioral segmentation,
except.
A. perception C. reaction
B. brand concept D. benefits
O O O O 31. It is the most common way to gather primary information/data with
the use of questionnaires or interview schedule.
A. Interview C. Survey
B. Focus group discussion D. Data gathering
O O O O 32. It is the traditional method of data collection which is normally done
on a face-to-face manner with the respondents.
A. personal interview C. survey
B. focus group discussion D. data gathering
O O O O 33. It refers to a type of focus group discussion where it obtains
information on general attitudes, understands the circumstances
under which customers might require your product or service, and
understand their desired outcomes.
A. trend explanation C. feature prioritization
B. exploratory D. comparative analysis
O O O O 34. It is a type of FGD where customers go to get similar information,
services or products and what attracts them to those resources.
A. trend explanation C. feature prioritization
B. exploratory D. comparative analysis
O O O O 35. A data gathering technique where it can be moderated to group
interviews and brainstorming sessions that provide information on
user’s needs and behaviors.
A. personal interview C. survey
B. focus group discussion D. data gathering
O O O O 36. It refers to information gathered directly from the respondents who
answered a set of questions.
A. primary research C. survey
B. secondary research D. data gathering
O O O O 37. It is a type of discussions in FGD if trade-offs have to be made among
various customer needs.
A. trend explanation C. feature prioritization
B. exploratory D. comparative analysis
O O O O 38. A data gathering technique where it can be done via direct mail, over
the phone, internet or e-mail.
A. data gathering C. focus group discussion
B. survey D. personal interview
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O O O O 39. It is the process of gathering, analyzing and interpreting the
information about the product or the services to be offered for sale in
the market, the market and about past, present and any potential
consumers for the products.
A. data gathering C. secondary research
B. primary research D. market research
O O O O 40. It is an important aspect of any type of research study, it can impact
the results of a study and ultimately lead to valid or invalid results.
A. data collection C. secondary research
B. primary research D. market research
O O O O 41. Which one is not a P in Marketing Mix?
A. Price B. People C. Participant D. Promotion
O O O O 42. Which statement supports Marketing Mix?
A. The marketing mix is also known as the “M’s” in marketing.
B. Marketing Mix is a set of controllable and connected variables that
a company gathers to satisfy a target group better than its
competitor.
C. There are only 4 P’s in Marketing Mix.
D. None of the above
O O O O 43. Select the best definition of Product.
A. A product is an item that is built or produced to satisfy the needs of
a certain group of people, it can be intangible or tangible.
B. A product is an item that is built or produced primarily to gain profit;
it can be intangible or tangible.
C. A product is an item that is built or produced to compete in the
world of business; it can be intangible or tangible.
D. None of the above
O O O O 44. Choose the best statement that applies to Consumer Goods.
A. A buyer of consumer goods must have complete knowledge of the
goods he buys and uses.
B. After-sale service is of paramount importance in the case of all
consumer goods.
C. The market for consumer goods is affected by technological
changes.
D. A buyer of consumer goods may not have thorough knowledge of
the goods he buys and uses.
O O O O 45. What factors would change in the distribution channel if there will be no
Intermediary like producer and consumer?
A. Nothing will take place, since it has no intermediary levels. In this
case the manufacturer cannot sell to customers.
B. Direct-marketing will take place, since it has no intermediary levels.
In this case the manufacturer sells directly to customers.
C. The company will utilize technology to reach the customers.
D. All of the above
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O O O O 46. What is the advantage of Penetration Pricing?
A. A firm has three options and these are to price lower, price the
same or price higher than competitors
B. A firm can create the perception that the products must have a
higher value than competing products because the prices are
higher.
C. The company earns more through cross-selling products along with
a basic core product.
D. The company will gain market share because the price charged for
products and services is set artificially low.
O O O O 47. Promotions refer to the partial set of activities, which communicate
the product, brand or service to the user. The idea is to make
people aware, attract and induce to buy the product, in
preference over others. Find the error.
A. partial set of activities
B. which communicates the product
C. idea is to make people aware, attract and induce to buy the
product
D. No error
O O O O 48. How would you promote a product?
A. By offering Free Gifts, Free Samples, Free Trial, Customer
Contests, Special Pricing
B. By offering Brochure, Catalogues, Fliers, Newsletters
C. By offering Post cards, Coupons, Email, Phone calls, Text
messages
D. None of the above
O O O O 49. The following are interpretations of the word Brand except
A. a legal instrument
B. a logo
C. a business
D. a vision
O O O O 50. How can you define your business's purpose?
A. Purpose can be defined in two ways: Functional which focuses on
the evaluations of success in terms of immediate and
commercial reasons and Intentional which focuses on success as
it relates to the ability to make money and do well in the world.
B. Purpose can be defined in two ways: National which focuses on
the evaluations of success within the country for commercial
reasons and International which focuses on success as it relates
to other countries to make money and do well in the world.
C. All of the above
D. None of the above
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Answer Key
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References
BOOKS
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De Guzman, A. A. (2018). Entrepreneurship (For Senior High School, Applied subject,
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