eman 003 4 ps of marketing

7/31/2019 EMAN 003 4 Ps of MArketing

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THE 4 PS OF

MARKETING


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4-Ps of Marketing

These are the basic elements of theMARKETING PLAN for anybusiness:

1. Product2. Promotion

3. Price4. Place


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1. Product

The business has to produce a product thatpeople want to buy.

They have to decide which market

segment they are aiming at age, income,geographical location etc.They then have to differentiate theirproduct so that it is slightly different fromwhat is on offer at present so that peoplecan be persuaded to give them a try.


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Product

Tangible products may be items likeconsumer goods. (Toothpaste,Soaps, Shampoos) or consumer

durables (Watches, IPods).Intangible products are service based

like the tourism industry andinformation technology basedservices or codes-based products likecellphone load and credits.


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Product

Product design which leads to the productattributes is the most important factor.However packaging also needs to be

taken into consideration while deciding thisfactor.To retain its competitiveness in the market,continuous product extensions thoughinnovation and thus differentiation is

required and is one of the strategies todifferentiate a product from its competitors.


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2. PROMOTION

This represents all of thecommunications that a marketer mayuse in the marketplace to increaseawareness about the product and itsbenefits to the target segment.Promotion has four distinct elements:

advertising, public relations, personalselling and sales promotion.


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PROMOTION

Customers have to be made aware ofthe product.The two main considerations aretarget market and cost.A new business will not be able to

afford to advertise on national

television, for instance and would notwish to because its market will belocal to start with.


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PROMOTION

Leaflets, billboards, advertisements inlocal newspapers, Yellow Pages andword of mouth would be moreappropriate.


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3. PRICE

The price is the simply amount a customerpays for the product.If the price outweigh the perceived benefits

for an individual, the perceived value of theoffering will be low and it will be unlikely tobe adopted, but if the benefits areperceived as greater than their costs,chances of trial and adoption of the productis much greater.


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PRICE

The price must be high enough tocover costs and make a profit but lowenough to attract customers.There are a number of possiblepricing strategies.


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Pricing Strategies

The most commonly used strategiesare:

1. PENETRATION PRICING -charging a low price, possibly not

quite covering costs, to gain aposition in the market.

This is quite popular with newbusinesses trying to get a toehold.


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Pricing Strategies

2. CREAMING the opposite topenetration pricing, this involvescharging a deliberately high price topersuade people that the product isof high quality.

Luxury car makers often use thisstrategy


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Pricing Strategies

3. COST PLUS PRICING this is themost common form of pricing.

Costs are totalled and a margin isadded on for profit to make the totalprice.


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4. PLACE

Place represents the location where a product canbe purchased.It is often referred to as the distribution channel.This may include any physical store (supermarket,departmental stores) as well as virtual stores (e-markets and e-malls) on the Internet.This is crucial as this provides the place utility tothe consumer, which often becomes a decidingfactor for the purchase of many products acrossmultiple product categories


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PLACE

The business must have a locationthat it can afford, and that isconvenient and suitable for customersand any supplier.


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4 Ps vs. 4 Cs vs. 4 Vs of Marketing

1. Product vs. Consumer vs. Validity.The old Product approach is to develop and

produce a product as good as possible tomarket and make sales.

The Consumer approach is to studyconsumer wants and needs, and tomanufacture products in response to thoseneeds.

. Validity discover that product with greatconsumer needs may not be valid andneed to be addressed.


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Product vs. Consumer vs. Validity.

We have recently cases of productwith great consumer demand such astoys and foods from China thatneeded to be moved out from theshelves due to high risk nature of theproducts.


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Product vs. Consumer vs. Validity.

Marketing should not only considerthe wants and needs of theconsumers, but also other productfactors of safety, environment, andsocial issues, viz. Validity.


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2. Price vs. Cost vs. Value

Price charged to consumer is nolonger a sufficient marketingparameter, for it is only one part ofconsumer cost.Value marketing go one step furtherto advocate that lowest price andconsiderate cost are not sufficient intoday's marketing solution.


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Price vs. Cost vs. Value

As more people are getting higher upin their standard of living, people aremore value conscience of what theyeat, what they wear, what they drive,etc.


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Place vs. Convenience vs. Venue

Convenience needs to take one stephigher up to the Venue level.Venue is not only providing place forclients to come, it is sales to yourhome.You can really shop while having your

pajamas on. Pizza home delivery hassnatched up a big portion of foodsales all over the world.


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Place vs. Convenience vs. Venue

Food is just at your finger tips. Howabout internet sales, internet banking,or what have you?


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4. Promotion vs. Communicationvs. Vogue

Promotion is one way streetadvertisement in telling what you thinkis best in the promoting product.

. Communication, however, appliestwo ways traffics between the buyerand seller to advertisement. It is an"interactive" program using phone,web site, etc. to get response fromadvertisement.


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Promotion vs. Communicationvs. Vogue

Vogue requires more than just getting amessage across and 2 wayscommunications.

It is saying that to make an advertisementsuccessful, it must have vogue or in trend.It must be popular, acceptable, and hasgreat public favor.

Like fashion, advertisement has a popularfashion trend. This must be applied tosqueeze out the best of promotion.

eman 003 4 ps of marketing

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