4 P's of Marketing

4 P’s of Marketing

INTRODUCTION MARKETING MIXPRODUCT PRICE

PLACE PROMOTION

ADVANTAGES PROPER REACH INCREASES PROFITS CONSUMER SATISFACTION

ENSURES SURVIVALOF PRODUCT

IMPROVES CORPORATE IMAGE

DISADVANTAGES RISKY CELEBRITY ENDORSEMENTS BARGAIN HUNTERS

THE MARKETING CONCEPT

Consumers

Marketing Research Marketing Segmentation

Product Price Place Promotion

PRODUCT

What is product?

Sub-variables:

Product line, product shape, size, colour, brand name, trade mark, packaging, labeling, after sales service, guarantees etc.

Aspects Brief explanations or examples

The appearance Color, size, shape, etc. must meet the consumer needs.

The function Able to be used Convenient for use Meeting special needs of customers

The cost Production costs must be low enough to earn some profit.

High cost, higher price. Too high price, customers unlikely to buy.

Features of a product to meet the needs of customers

Price

exchange value of product

Price should b reasonable.

Sub-variables:

Credit sales, installment payments, discounts, gifts, etc.

The pricing policy that a business chooses is often a reflection of the market at which it is aiming. The right price set must take into account of production costs, competitors’ prices and consumers’ purchase ability and demand level.

PLACEPlace is the third of the 4 P’s of marketing mix marketing is about putting the right product, at the right price,at the right place, at the right time. Sub variables- warehousing,transportation

Two types of channel of distribution methods are available. Indirect distribution involves distributing your product by the use of an intermediary for example a manufacturer selling to a wholesaler and then on to the retailer.. Direct distribution involves distributing direct from a manufacturer to the consumer For example Dell Computers providing directly to its target custmers. The advantage of direct distribution is that it gives a manufacturer complete control over their product.

Distribution channel

Distribution strategies

Intensive distribution-low price productExclusive distribution-The product is usually highly priced, and requires the intermediary to place much detail in its sellSelective distribution-common with product such as computers,television

promotionPromotion includes all activities undertaken by an organization to promote it’s productSub variables-sales promotion, personal selling, public relation, advertising,sponsorship

Promotion strategies

FACTORS AFFECTING MARKETING MIX

1. CONSUMERS 2. COMPETITION

3. Extent of competition

4. Trade factors

5. Market conditions

6. Government policies

7. Organizational factors

8. Technological changes 9. Globalization

STEPS IN DETERMINING APPROPRIATE MARKETING MIX

Analysing External and Internal Environment

Determining Marketing Objectives and Detailed Planning

Testing the Mix and Implementing the Marketing Mix

Monitoring Operations

Effects of Environmental Variables on Marketing Mix

POLITICAL VARIABLE:- The political environment in any

country is always influenced by its legislatures , which are its law making bodies.

Eg: changes in tax policy ,rules regulations etc.

Social Environment:-

Social environment is formed by the society around the business.

BUSINESS

EMPLOYEES

COSTOMERS

GOVERNMENT

SHAREHOLDE

R

Technological Environment:- Technology keeps on changing very

fast. An innovation of today may be a history tomorrow.

Eg: Software updates, electronic good, fashion.

Natural environment:-

Natural environment includes land, minerals, oil, water etc . As natural resources are very less it must be used properly.

Eg:- Climatic condition , natural resources.

Demographic Environment:-

Demographic environment includes factors affecting population such as age, income, sex, occupation, lifestyle, education etc.

Eg:- Pricing of a commodity.

Economic environment:-

Economic environment of a nation includes economic conditions like national income, per capita income etc and economic policies formulated by the government.

Eg:- Export Import policies.

Case Study

Dietrich Matischitz launched red bull in 1987.

Annual sales of around 4 billion cans in 160 countries.

Marketing Mix

Product Price

Place Promotion

Promotional Approaches

Above the Line :PressTelevisionRadioInternet

Below the Line :Event Marketing in sportsa)Redbull X fightersb)Red bull air race

It adopts a progressive marketing strategy which is constantly evolving to push the brand forward. Social and digital media is at the heart of all its promotions.It allows it to adapt t o techno n social changes

Conclusion

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