VALUE PROPOSITION, BUSINESS PLAN, & MARKETING MIX

● Marketing is everything you do to find customers

VALUE PROPOSITION and satisfy their needs while making profit
V. OPERATIONAL/ORGANIZATIONAL PLAN
VALUE – the importance of something
●
● Manpower, machinery, materials, & methods that
VALUE PROPOSITION – why a customer should buy a
●
will help you to start your business
product/service
VI. FINANCIAL PLAN
○ Major driver in customer purchase
● Starting capital to run the business
● TAGLINES – eternal
● How will you sustain such business in your daily
● SLOGANS – for campaigns & promotions
operations
TIPS IN MAKING AN EFFECTIVE VALUE PROPOSITION
● Preparation of financial statements
1. Prepare a situation analysis
VII. APPENDIX
2. Make your value proposition straight to the point,
● Documentations
simple, & specific
● References to mentors
3. Highlight the value of your product or service
4. Adapt the language of your market MARKETING MIX
5. Add credibility enhancing elements such as actual
MARKETING MIX
testimonials from customers, partners, and other
● Refers to the set of actions, or tactics, that a
stakeholders
company uses to promote its brand or product in
6. Differentiate your value proposition with your
the market
competitors
● The combination of marketing components that will
BUSINESS PLAN maximize customer satisfaction and ensure profits
● CUSTOMERS – lifeblood of business
I. EXECUTIVE SUMMARY
● SATISFACTION – meet customer expectations
● Outline of your business idea
● DELIGHT – exceed expectations
● Need to complete all the other parts of the business
USES OF 7Ps MODEL
plan before doing the ES
● Conduct a situation analysis
● Must be clear and organized because it is the first
● Set objectives
impression one gets on your business idea
● Conduct a strength, weakness, opportunity, & threat
II. STUDY BACKGROUND
(SWOT)
● All business ideas are based on an idea &
● Come up with marketing strategies and tactics
opportunity
● Concept of your business PRODUCT
● Business logo, vision, mission, objectives, & VP
● A product is any physical good, service, or idea that
● BUSINESS LOGO – identity; symbolizes the business
is created by an entrepreneur or an innovator in
a. Monogram – letter marks; letters usually
serving the needs of the customers and addressing
brand initials
their existing problems.
b. Wordmarks – logotypes; font-based logo
● The product or service should not be created before
focused on the business name
finding the right customers, because this is very
c. Pictorial marks – brand mark/logo symbols
risky and the resources and time might be put to
d. Abstract mark – abstract geometric form
waste.
e. Mascots – illustrated character
THREE-LEVEL CONCEPT OF PRODUCTS/SERVICES
f. Combination mark
LEVEL 1: Core Benefits (basic features)
g. Emblem – font inside a symbol; like badges
- Major factors why a customer buys
● VISION – where you want to be. Communicates
LEVEL 2: Physical Characteristics (Expected features)
both the purpose and values of your business.
- Better packaging for products or a better physical
About your future
evidence or customer experience for services
● MISSION – how you will get to where you want to be.
LEVEL 3: Augmented benefits (Unexpected features)
Purpose & primary objectives related to your
- Additional benefits
customer needs and team value
III. MACROENVIRONMENTAL & MICROMARKET ANALYSIS PRICE
● MACRO – STEEPLED analysis
● Peso value that the entrepreneur assigns to a
● MICRO – consumer preferences, interests, and
certain product or service after considering its costs,
perceptions; competitors; and location
competition, objectives, positioning, and target
IV. MARKETING PLAN
market.
 ● The only P that generates income ● DISTRIBUTION CHANNEL – a medium by which
PRICING STRATEGIES goods and services are made available to the
1. Bundling consumers for use or consumption
● Customer buys two or more products or services MAIN CATEGORIES OF MARKETING INTERMEDIARIES
together for one price instead of buying items 1. Wholesaling intermediaries
separately for individual prices. 2. Retailers
● E.X.: 3 in 1 coffee for PHP 8.00, manicure and FUNCTION OF MARKETING INTERMEDIARIES
pedicure for PHP 150.00 Buying, selling, sorting, storing, and transporting
2. Penetration pricing TYPES OF DISTRIBUTION CHANNEL
● Attract customers to a new product or service by 1. Direct marketing channel – has no middleman &
offering a lower price initially but the entrepreneur intermediary levels
will eventually increase the price once the desired 2. Retailer marketing channel – has middle man & 1
market share is achieved. intermediary level
● Isn’t sustainable in the long run, however, and is 3. Wholesaler/retailer marketing channel – has
typically applied for a short time. middleman & 2 intermediary levels
3. Skimming 4. Wholesaler/jobber/retailer marketing channel -
● Opposite of penetration pricing where prices are has middleman & 3 intermediary levels
initially high and then they are lowered to offer the
PROMOTION
product or service to a wider market and as the
product becomes less and less popular. ● Presenting the products or services to the public &
4. Competitive pricing how these can address the public’s needs, wants,
● Benchmarking prices with competitors problems, or desires
5. Product line pricing ● Primary target market → the main audience
● Pricing different products/services within a parallel PROMOTIONAL TOOLS
product array using varying price points 1. Advertising
6. Psychological pricing ● Communication that influences the behavior of a
● Considers the psychology & positioning of price in customer to choose the product/service over the
the market competitors
● E.X.: Using 99.99 instead of 100 ● Informing, educating, & familiarizing the public with
7. Premium pricing the product and service offerings
● Setting a very high price to reflect elitism & ● Building a trustworthy image
superiority ● Increasing the sales
8. Optional pricing ● Forms: TV, radio, internet, mobile phones, print
● Adding an extra product or service on top of the 2. Selling
original to generate more revenue ● The act of trading a product/service for a price
9. Cost-based pricing 3. Sales promotion
● Basis of markup is the cost of sales ● Short-term promotional gimmicks wherein practical
10. Cost plus pricing incentives & appealing activities are incorporated
● Markup is based on a certain percentage of cost to entice the customers to buy the product or avail
CLASSIFICATION OF COSTS the service
● VARIABLE/CONTROLLABLE COSTS – directly ● Sales discounts, discount coupons, free taste,
proportional to the number of products raffles, premiums, reward cards, contests, games,
manufactured or number of services performed promo items, product or service bundles, trade fairs,
(raw materials used) exhibits
● FIXED/UNCONTROLLABLE COSTS – not directly 4. Public relations
proportional to the manufacturing of a product or ● Image-building initiatives of the entrepreneur to
performance of service (cost of equipment, rental make the name of the business reputable to
cost, and utilities stakeholders, such as target customers,
government agencies, business partners, media,
PLACE
and the public
● Location or the medium of transaction ● Press conference, launching events, strong media
● Covers the product distribution & the whole relations through press kits, social responsibility
business logistics events (charity/community events), lobbying (good
● Make the product conveniently available to the relationship with govt.), web public relations (blogs,
target market consistent with their purchasing socmed, emails, word of mouth)
pattern
 PEOPLE

● Additional 3Ps; included in operational plan

● People play a vital role in servicing customers even
the entrepreneur sells only physical goods.
● Employees have become a major influence in the
customer’s buying behavior.
● Leadership skills, qualities, skills

PACKAGING

● How it is presented
● Overall identification (look & feel)
● First element that the customers will see
● Includes the VP

PROCESS

● Marketers began to realize the importance of the

internal and external operations of the business to
serve customers better.
● Step by step procedure / overall workflow

FUNDAMENTALS OF BRAND MANAGEMENT

1. Brand refers to the identity of a company, of a

product or a service, or of an entrepreneur
- Gives credibility / trustworthiness
2. Brand is a symbol of promise or assurance from the
entrepreneur that what it purports to the customer
will happen
3. Brand management is the tangible & intangible
elements of a brand
BRANDING – process of integrating the strategies formed
from the marketing mix to give identity to the product or
service.
BRAND NAME should be: unique, extendable, easy to
remember, can describe the benefits, positive & inspiring,
can be converted to other dialect/language, can describe a
product strategy, can describe concrete qualities