The 4Ps in Marketing Mix
The marketing mix is a business tool used in marketing and by marketers. The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four P's: price, product, promotion, and place.
The marketing mix is a business tool used in marketing and by marketers. The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four P's: price, product, promotion, and place.
Product
A product is seen as an item that satisfies what a consumer demands. It is a tangible good or an intangible service.Tangible products are those that have an independent physical existence, such as the motor car and the disposable razor. A less obvious but ubiquitous mass-produced service is a computer operating system.
Every product is subject to a life-cycle. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product moves.
A marker must consider product mix, such as how to position a product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. Marketers can expand the current product mix by increasing a certain product line's depth, such as the functions of a product, or by increasing the number of product lines, which is the categories of similar products. The marketer must also consider product development strategies.
Such as Mac Air and Mac Pro. Obviously Mac Air is designed for people that don't need too advanced computer. They may only use computers to watch videos, write papers and check emails. Mac Pro is for people that require well-working computers for their uses. For example, people who work in a Design Firm that need to use big 3D modelling applications like Zbrush, or maybe students that play tons of computer games.
Such as Mac Air and Mac Pro. Obviously Mac Air is designed for people that don't need too advanced computer. They may only use computers to watch videos, write papers and check emails. Mac Pro is for people that require well-working computers for their uses. For example, people who work in a Design Firm that need to use big 3D modelling applications like Zbrush, or maybe students that play tons of computer games.
Price
Price is the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix.
Price is the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix.
Three basic pricing strategies are: market skimming pricing, market penetration pricing and neutral pricing, targeting to different consumers with different social statue. The 'reference value' (where the consumer refers to the prices of competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account. This means the price should match to the product and the brand. For example, Gucci sells extremely high price clothes while H&M sells clothes with normal prices. But they still get similar amount of profits because of the different marketing area they have.
Promotion
All of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion includes elements such as: advertising, public relations, sales organisation and sales promotion.
All of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion includes elements such as: advertising, public relations, sales organisation and sales promotion.
Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media, billboards and getting celebrities.
Companies are good at advertising such as Nike. Nike gets almost every top NBA stars, which makes it dominate the basketball shoes market. From Michael Jordan to Kobe Bryant and Lebron Jame, Nike has been doing this for 20 years and becomes extremely successful.
Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.
A good example of company that is doing good PR is Pepsi and Coca Cola. Pepsi decided to dress up as Coca Cola in Halloween, and of course, Coca Cola fights back by using the same picture but different line.
Personal selling singles out those situations in which a real human being is trying to sell something to another face-to-face. There are some advantages of personal selling, such as high costumer attentions, interactivity, persuasive impact and adoptability, but also some disadvantages like cost, labor intensive and limited number of costumers reached.
Sorry I have to mention Apple again. But it is super good company for some reasons. When we walk into Apple Store, we always see their employees wearing the blue apple T-shirt come to us and ask what do we need (unless they think you are just a random kids using their wifi or trying to play some video games on their computers, which is the situation I always face), which is not frequent in electrical markets.
Place
Place (distribution) refers to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix.
Amazon knows how Place is important in marketing and opens up the largest Internet-based retailer in the United States. Because Place is so important, many companies have to pay so much money on buying space for opening up a shop, so many of these companies search for internet selling. And Amazon provides a platform for them.
A market should follow government standards.
Policy-makers have two broad types of instruments available for changing consumption and production habits in society. They can use traditional regulatory approaches that set specific standards across polluters, or they can use economic incentive or market-based policies that rely on market forces to correct for producer and consumer behavior.
Examples of trigger products or incremental products: Starbucks
Starbucks was orginally a store to sell coffee beans and coffee drinking equipment. After 10 years, the director of market in Starbucks had a trip to Italy and he was fascinated by the coffee culture there, so he decided to take that culture to America.
Analysis of product pricing that matches each of the price setting strategies:
Examples of promotion campaigns for different products:
NIKE JUST DO IT
REEBOK LIVE WITH FIRE
There was a time in our history when Reebok sold more shoes than Nike. But to succeed, they needed a new campaign -- they needed the "Just Do It." campaign.
The campaign was a hit. In 1988, Nike sales were at a measly (hah) $800 million; by 1998, sales exceeded $9.2 billion. "
NIKE JUST DO IT
REEBOK LIVE WITH FIRE
There was a time in our history when Reebok sold more shoes than Nike. But to succeed, they needed a new campaign -- they needed the "Just Do It." campaign.
The campaign was a hit. In 1988, Nike sales were at a measly (hah) $800 million; by 1998, sales exceeded $9.2 billion. "
Source Cited
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1.http://en.wikipedia.org/wiki/Marketing_mix
2.http://www.notesdesk.com/notes/marketing/product-life-cycle-plc/
3.http://www.macrumors.com/roundup/os-x/
4.http://www.old-picture.com/american-legacy/001/Marmon-Motor-Car-Co.htm
5.https://www.apple.com/mac/compare/notebooks.html
6.http://www.logosquizwalkthrough.com/gucci-2/
7.https://twitter.com/hm
8.https://www.iconfinder.com/icons/113136/price_tag_icon
9.http://www.indiemusic.com/ee/index.php/blog/comments/the_four_ps_of_playing_live_shows_promotion
10.http://toplevelaffiliate.com/advertise-business-without-wasting-money/
11.https://jjsportstalk.wordpress.com/2011/11/25/top-10-best-current-players-in-the-nba/
12.http://www.referenceforbusiness.com/encyclopedia/Pro-Res/Public-Relations.html
13.http://prexamples.com/2013/12/2013-in-review-top-20-pr-campaigns-and-stunts-of-the-year/
14.http://bloggr.in/2013/11/pepsi-coke-soda-wars/
15.http://www.tutor2u.net/business/gcse/marketing_personal_selling.html
16.http://etc.usf.edu/clipart/4000/4072/man_20.htm
17.http://www.iclarified.com/entry/index.php?enid=1346
18.http://gggmarketing.us/google/
19.http://www.ias.org.uk/Alcohol-knowledge-centre/Marketing/Factsheets/What-is-Alcohol-
Marketing-The-Four-Ps.aspx
20.http://www.salon.com/2013/03/15/hey_amazon_wheres_my_money/
21.http://yosemite.epa.gov/EE%5Cepa%5Ceed.nsf/webpages/EconomicIncentives.html
22.http://www.incrementalinnovation.com/incremental-innovation/incremental-innovation-products-services
23.http://www.newsgeneration.com/newsgenwp/wp-content/uploads/2014/09/Starbucks-free-to-use.jpg
24.http://faculty.piercecollege.edu/rskidmore/Ghost/library/Chapters/CHPT12-04.pdf
25.http://blog.hubspot.com/blog/tabid/6307/bid/32763/The-10-Greatest-Marketing-Campaigns-of-All-Time.aspx
26.http://corecommunique.com/wp-content/uploads/2013/03/REEBOK-LAUNCHES-INSPIRATIONAL-%E2%80%9CLIVE-WITH-FIRE%E2%80%9D-CAMPAIGN-1.jpg