Hello everybody!
The marketing mix is the combination of techniques used to market a brand. This means putting the right product, at the right price, at the right place, at the right time. These techniques are often called the Ps. In addition to the Ps there are also As, Cs and Os. But today I’m only going to explain the four Ps, which are Price, Product (or service), Place and Promotion. Each of these elements should be designed to meet customers’ needs and requirements.
Price
As you know the price is the sum a customer pays for the product. It depends on the costs of production, ability of the market to pay, supply and a host of other direct and indirect factors. The price often will affect the demand and sales as well. When setting a price, the marketer must account which discounts could be offered to trade customers.
· What is the value of the product to the buyer?
· What discounts should be offered to trade customers?
· How will your price compare to your competitors?
· Is the customer price sensitive?
Product
A product is seen as an item that is built or produced to satisfy the needs of a certain group of people. You must ensure to have the right type of product that is in demand for your market. A product has a certain life-cycle that includes the growth phase followed by the maturity phase and finally the sales decline phase.
· What does the customer want from the product?
· What features does it have to meet these needs?
· How and where will the customer use it?
· What size, colour should it be?
Place
Place means where you sell the product or service. Placement or distribution is a very important part of the product mix definition. You have to position and distribute the product in a place that is accessible to potential buyers. Therefore, the location of your shop or outlet is essential. Retailers often pay a premium for the right location.
· Where do buyers look for your product?
· How can you access the right distribution channels?
· Do you need to use a sales force?
· What do your competitors do, and how can you learn from them and/or differentiate?
Promotion
Promotion means to communicate with your customer, to make the product or service known to the potential buyers. This can include advertising, word of mouth or press reports. Word of mouth is formless communication about the benefits of the product by satisfied customers or ordinary individuals.
· Where and when can you get across your marketing messages to your target market?
· Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards?
· When is the best time to promote your product?
· How do your competitors do their promotions?
Do you think that only one of the four Ps can give great success too? Or do you think that only the use of all four Ps can do so?
Regards,
Nadja