Business Fit

Marketing Mix at Work: Know the 4 P’s 0

Every good businessman knows that the key to having a successful business is a healthy relationship between buyers and sellers. Every marketing strategy centers upon the basic principle that is when the customers are satisfied, they would continue to indulge in the product thus creating a mutual bond of trust. There are a number of factors involved in creating this kind of atmosphere and these factors are commonly termed as a marketing mix. The basic tactical components of a marketing plan can be summed up in 4 P’s; price, place, product, and promotion. Think of them as the essential ingredients in a recipe and they can be freely modified to suit the taste of the customer. Strategically balancing out the most appealing combination for each of these elements is essential to satisfy the needs of the customer and in turn serving the purpose of the product sellers. You could for example modify the price of your goods depending on the demand or concentrate more on promotions while maintaining a standard price.

The 4 P’s

  • Product

This is the goods or the services that are being sold. Its modifications include the amount of production wherein it could be mass produced or can be made in specific number of units. Both have their own advantage and disadvantages depending on the appeal of the product. Mass produced products are those with every day high demands while those with limited stocks may be rare or hard to produce but could be sold in a higher price range. Careful consideration of product comparisons between similar products is essential in order for you to determine the strategy involved in the production. Package labeling no matter how mundane we may think is also important since it creates the first impression of the product and also considerably alters the production design.

  • Price

This is the amount paid by the customer for a certain product or services. Price regulation is important in order to appeal to the liking of the customer. This is determined by the raw materials, cost of production, and transportation among other factors. But the greatest determinant of price is product quality and competition. A far superior product may be sold more than inferior competitors if there are willing buyers. Most of the time however, popularity and brand establishment plays a role in undermining new products despite their superiority against well-known competitors. In the end it’s the competition that greatly determines the price unless a super effective promotion is implored.

  • Promotion

Any product no matter how good it can be will not be successful in any market endeavor without good promotion.  Product promotion is in charge in communicating with the customers about the product, its benefits, and pricing. Promotion itself includes for elements namely advertising, public relations, sales promotion, and personal selling. Any one of these elements or a combination of all of them can greatly help public knowledge about a product and can build popularity and trust between buyers and sellers.

  • Placement

This determines accessibility and feasibility of a product in a certain location. This is determined by the general needs of the area and the possibility of production or delivery of a product nearby. Water for example is hard to come by in arid areas it is therefore good to ell water to these parts. Production however would depend upon a good and cheap delivery system but would much better benefit the seller if he has access to a nearby water source.

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