Sunday, March 7, 2010

Marketing Mix Four P's

Although marketing is commonly thought of as only consisting of promoting a product or service through advertising and publicity, there is actually much more to it. Marketing is the process of establishing a product, pricing it, promoting the product and placing it for sale, as a way to make profits for the company. These items are called the Four-Ps or the marketing mix. it is an easy way to remember the parts of marketing.

Questions you may have include:

  • Why is promotion often emphasized?
  • What are the Four-Ps?
  • What is the advantage of using the Four-Ps?

Most think only of promotion

The general public normally thinks of marketing as promotion, advertising, branding and publicity of products or services. They often lump those items together as promotion.

What they do not realize is that there are other factors that a business must consider as part of delivering their products or services to the market and selling them.

Four-Ps

Marketing can be classified into four categories, called the Four-Ps:

  • Product
  • Price
  • Promotion
  • Place

These activities are also called the marketing mix. They are the variables that marketing managers can control in order to satisfy customers in the target market.

Using four words starting in "P" is an easy way to remember the items.

Product marketing

The product part of the marketing mix concerns determining what products or services customers want and establishing specifications for those items.

Considerations include functionality, appearance and quality of the product, as well as packaging, warranty and support.

Pricing marketing

Setting a competitive price for a product or service is an important part of marketing. That price may be based on the marketing strategy of whether to give the impression of quality or to appeal to the price-conscious buyers. Supply and demand also affects pricing.

Pricing includes not only the list price, but also discounts, financing and leasing options.

Promotion marketing

The promotion part of the marketing mix concerns communicating and selling to potential customers. This includes advertising, sales promotion, publicity and personal selling. It refers to the various methods of promoting the product, brand or company, as well as the message and media to be used.

Advertising and promotion costs can be a large part of the product price. Analysis should be performed to determine the actual value of the promotion in getting new customers.

Place marketing

Place is the location or channel where the sale can be made. This may include geographic location and market segment. Sometimes this "P" stands for placement or distribution, which refers to how the product or service gets to the customer.

Distribution includes market coverage, channel member selection, logistics and levels of service.

Advantage of Four-P system

The advantage of using this marketing mix of products, pricing, promotion and place is that it is easy to remember and provides a good organization of marketing.

There are other combinations of the factors in marketing, but the Four-P classification has been the most useful is sticking in the minds of marketing students. In other words, the expression has become a "brand" for marketing.

Summary

Marketing is commonly thought of as only consisting of promoting a product or service through advertising and publicity. Actually, marketing consists of the process of establishing a product, pricing it, promoting the product, and placing it for sale, as a way to make profits for the business. These items are called the Four-Ps, and they are an easy way to remember the factors of marketing.

Source:http://www.schoolforchampions.com/marketing/basics_four-p_mix.htm

1 comment:

SEO said...

Excellent stuff! Really I like your post and promotion is my favorite view for marketing.

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