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MARKETING MIX / 4P's OF MARKETING

Marketing Mix | 4 P’s of Marketing

Marketers use different tools in order to get the desired response from the customers or best satisfy their needs. These tools are known as The Marketing Mix. Marketing Mix is probably the most famous term in marketing.
The marketing mix consists of everything the firm can do to influence the demand for its products. Marketing Mix is a combination of marketing tools that a company uses to satisfy their target customers and achieving organizational goals.

COMPONENTS AND ELEMENTS OF MARKETING
McCarthy classified all these marketing tools under four broad categories:
§  Product
§  Price
§  Place
§  Promotion
These four elements are the basic components of a marketing plan and are collectively called 4 P’s of marketing. Below is an illustration for marketing mix.

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1. Product Strategy:
Product is the actual offering by the company to its targeted customers which also includes value added stuff. The word “Product” covers good, service or an idea. So we can say that Product may be tangible (goods) or intangible (services).  The good may be Consumer good like pen, book, shoes, etc. or Producer good like plant, office equipment, machinery, etc.
The product strategy involves the decisions of what type of good, in what quality and for whom the goods or services are to be offered for sale.
While formulating the marketing strategy, product decisions include:
§  What to offer?
§  Brand name
§  Packaging
§  Quality
§  Appearance / Design
§  Installation
§  After sale services
§  Warranty
So, if the business is to stay, prosper and earn profit, then right product has to be developed after careful consideration of the needs of the consumers to whom it is to be sold.
2. Price Strategy
Of all the aspects of the marketing mix, price is the one, which creates sales revenue - all the others are costs.  It has a direct impact  اثرon the customers, the business and the economy. To the consumer, the price is a major indicator of the quality of good and an important factor in making decision about its purchase.  For the business, Pricing strategy not only related to the profit margins but also helps in finding target customers. Pricing decision also influence the choice of marketing channels. Price decisions include:
§  Pricing Strategy
§  List Price
§  payment period
§  Discounts
§  Financing
§  Credit terms
Using price as a weapon for rivals is as old as mankind. But it’s risky too. Consumers are often sensitive for price, discounts and additional offers. Another aspect of pricing is that expensive products are considered of good quality.
3. Place (Placement) Strategy:
            The element of marketing is concerned with all those activities which are needed to move the product or service from the seller to the buyer. The place strategy ensures that the products are available to the consumers at the right time when they are needed, (Time Utility), at the place where they are demanded (Place Utility), in the form or shape in which they are required (Form Utility) and the ownership of the good is transferred with less financial risk (Possession Utility).
It not only includes the place where the product is placed, all those activities performed by the company to ensure the availability of the product to the targeted customers. Availability of the product at the right place, at the right time and in the right quantity is crucial in placement decisions.
Placement decisions include:
§  Placement
§  Logistics
§  Inventory
§  Order processing
§  Market coverage
§  Distribution channels

4. Promotion Strategy:
Promotion includes all communication and selling activities to persuade target customers to buy the product. Promotion decisions include:
§  Advertising
§  Media Types
§  Message
§  Sales promotion
§  Personal selling
§  Public relations
Advertising is mass paid information. The aim of advertising is to communicate information to selected section of the public about the product. Personal selling is the sale of the good direct to the consumers. Sales promotion is a marketing activity which persuades the prospective buyers to purchase the product or service. It is a short term marketing activity which stimulates quick buyer’s action. For example, free samples, temporary price reductions, lotteries, etc are only a few of the many sale promotional techniques.
It often takes time and requires market research to develop a successful marketing mix. You should not depend on one mix always try new mixes. While designing the mix, make changes to all mixes in such a way that all conveys the same message.

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