1.4.3 - The Marketing Mix Flashcards
The 4Ps
Price
Product
Promotion
Place
Price
The amount of money that a customer will need to pay to receive the product
Factors influencing the price will include:
The amount of competition from other businesses
Customers opinions about the product’s value
Product
The actual good or service that the business is offering for sale
Promotion
The range of activities undertaken by a business to make customers aware of its products to encourage customers to buy them
Types of promotion:
Offering discounts
TV or billboard advertising
Social media
Sponsorships
Contests
Product giveaways
Place
Where the customer can purchase the product, also the route that a product takes to get from the manufacturer to end customer
A business may adapt its marketing mix so that it continues to meet changing needs of customers and the competitive environment by:
Changing the features of a product to incorporate new trends and technology
Adjusting the price of its product to respond to competitive pricing
Advertising campaign to boost interest response in failing sales
Selling its products through popular retailers
Competitive pricing
basing the price of a product on the prices charged by competitors
Cost-plus pricing
basing the price of a product on the cost of producing it plus an allowance for profit.
Loss leader
a product that is deliberately sold for less than its cost price in order to attract customers.
Market-orientated pricing
pricing goods based on an analysis of a market through market research.
Mark-up pricing
pricing a product based on the cost of production plus a standard percentage (the mark up) for profit.
Penetration pricing
setting prices very low in order to gain a larger share of a market, The price is raised later.
Predatory pricing
setting the prices very low in order to gain a share of the market or to drive competitors out of business. The price is raised later.
