The marketing mix consists of 4Ps - Product, Price, Place, and Promotion. Product refers to the good or service. Price considers factors like costs, demand, and competition. Place determines distribution channels. Promotion makes consumers aware of the product and influences purchasing decisions through advertising and other communication methods. Together, developing the right approach for each P ensures businesses successfully market products and services to their target audience.
The marketing mix consists of 4Ps - Product, Price, Place, and Promotion. Product refers to the good or service. Price considers factors like costs, demand, and competition. Place determines distribution channels. Promotion makes consumers aware of the product and influences purchasing decisions through advertising and other communication methods. Together, developing the right approach for each P ensures businesses successfully market products and services to their target audience.
The marketing mix consists of 4Ps - Product, Price, Place, and Promotion. Product refers to the good or service. Price considers factors like costs, demand, and competition. Place determines distribution channels. Promotion makes consumers aware of the product and influences purchasing decisions through advertising and other communication methods. Together, developing the right approach for each P ensures businesses successfully market products and services to their target audience.
The marketing mix consists of 4Ps - Product, Price, Place, and Promotion. Product refers to the good or service. Price considers factors like costs, demand, and competition. Place determines distribution channels. Promotion makes consumers aware of the product and influences purchasing decisions through advertising and other communication methods. Together, developing the right approach for each P ensures businesses successfully market products and services to their target audience.
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THE MARKETING MIX – (THE 4Ps) of the marketing
process The marketing mix ensures that the business: Develops the right product
At the right price for the target market
And reaches consumers in the right place at the right time
Using the right promotions
PRODUCT, PRICE, PLACE AND PROMOTION ARE THE FOCUS OR 4 MAIN ELEMENTS OF THE MARKETING MIX OF ANY BUSINESS ORGANISATION ELEMENTS OF THE MARKETING MIX 1. PRODUCT - Once market research has identified the preferences of your target market, the firm can start designing and developing products and product features to appeal to the target market. Product refers to a good or service that the firm sells ( tangible and intangible products). Developing a product includes: Product design, features, incorporated technologies, colours, and tastes and smell if relevant. The Product Life Cycle – this shows the stages through which a product develops over time. The stages are based on the level of sales: It is important that a firm understands the stage of the product life cycle that its product is in. The firm will be able to successfully create a strategy to market the product and ensure it stays relevant as customers’ preferences and technologies change. Product life cycle may be short, such as for fads or fashion trends. Product life cycle may be longer if the product is updated and modified over time to extend the life cycle, and therefore profitability. 2. PRICE - Setting the right price is important . The following factors affect the pricing decision or strategy used by a business: The average cost of producing each product unit Consumer demand and their willingness and ability to pay for it The degree of competition in the market The number of close substitutes to the product The stage in the product’s life cycle PRICING STRATEGIES USED BY A BUSINESS:
Cost plus pricing- The business adds a mark-up to the cost of
producing the product. Penetration pricing – Setting the price low initially, to encourage consumers to try a new product, in order to build sales and product loyalty.
Once the product is established and sales are increasing, the
business may increase its prices. Price Skimming - Setting a high price initially.
It is used for innovative/high quality products where there is little
or no competition High profit margin earned before competitors enter market Eventually prices may be reduced Example: a firm introducing a new type of television Psychological pricing - Consumers often use the price of a product as an indicator of its value and quality. Examples: consumers expect to pay a high price for designer clothes and items marketed as luxury or high-end brands Price-ending numbers for low-cost purchases – consumers are more likely to buy a product priced at say $19.99 than they would if it was priced at $20. Loss leader pricing - A ‘loss leader’ is a popular product that is priced below its cost of production in order to encourage consumers into shops or retail outlets to view and hopefully buy other more profitable products that are also on display.
Example: A supermarket may use a popular range of biscuits as a
loss leader. People are attracted into the supermarket by their low prices and will usually buy other items while shopping there. Competition-based pricing – Firms can set prices at or below the prices of rival products.
Going rate pricing – Setting a price equal to the prevailing market
price or ‘going rate’ for very similar or identical products. Example: the market prices of many minerals, oils, crops and cereals are determined through international trade between many consumers and producers all over the world. Price discrimination – The business charges different prices to different groups of people for the same product.
Example: cinemas usually charge a lower price for children’s tickets
than for adult’s tickets. 3. PLACE - After developing a product and deciding on the right pricing strategy to use, the firm must then get its products to consumers. The product must be in the right place at the right time for consumers. Firms must choose: Channels of distribution and places of sale such as supermarkets and department stores, market stalls or online. 4. PROMOTION – Marketing communication designed to influence consumer behavior and their spending decisions.
Making consumers aware of your product
Its brand name and features Where it is sold The price it sells for The aim of promotions is to create consumer wants for a product so as to generate sales and profits. JANUARY 2016 – QUESTION 4
(a) (i) Define the term ‘marketing’. (2 marks)
(ii) List the FOUR elements of the ‘marketing mix’. (4 marks) (b) (i) State TWO reasons why firms engage in public relations (PR). (2 marks) (ii) Describe THREE marketing methods, other than social media, employed by businesses to promote sales. (6 marks) (c) Explain TWO ways in which businesses can use social media to promote sales. (6 marks) PLEASE NOTE: YOU ARE REQUIRED TO ATTEMPT THIS QUESTION IN YOUR NOTEBOOK.