Marketing Mix- 4P'S
The marketing mix is a recipe for effective marketing, using the marketing mix when planning the marketing for a product allows for a consistent approach. The marketing mix is often referred to as the “Four P’s”
The product has to have the right features - for example, it must look good and work well, a product can be anything that is capable of satisfying customer needs. The product element is the new product itself, getting the price right involves examining customer perceptions and rival products as well as costs of manufacture. Finding out how to make the product, setting up the production line, providing the finance and manufacturing the product are not the responsibility of the marketing function.
Of all the aspects of the marketing mix, price is the one, which creates sales revenue - all the others are costs. The price of an item is clearly an important determinant of the value of sales made. In theory, price is really determined by the discovery of what customers perceive is the value of the item on sale. Researching consumers' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay.
- Competitive pricing- Where the prices are reduced by a small amount.
-Cost and plus pricing- Most common pricing strategy.
-Penetration pricing- Charge a low price to attract more customers.
-Price skimming- As time goes by the price pf the product decreases.
-Destroyer Pricing- Come in at a low price, which the competitor cannot match.
-Price discrimination- Changing prices to the type of customer they are. E.g-sexuality, age
Although figures vary widely from product to product, roughly a fifth of the cost of a product goes on getting it to the customer. 'Place' is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers.
Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The cost associated with promotion or advertising goods and services often represents a sizable proportion of the overall cost of producing an item. When promoting the product you have to think BIG and BOLD.
>How would you attract the customer?
>Where would you advertise your product?
>How would you advertise it?
- To inform prospective customer of the product and the business
-To show the benefits of the profit
-To persuade potential customers to buy the product
-To present a good image