4 P of Marketing Complete Full

8/2/2019 4 P of Marketing Complete Full

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4 Ps of Marketing

Marketing is base on the following

1. Product2. Price3. Place4. Promotion

Marketing strategies, segmentations and frames are all founded on these 4Ps. Today, the manufacturer faces a severe competition which he meetssuccessfully by formulating marketing strategies addressing these 4 Ps.

1.PRODUCT :The main objective of the marketing is to sell something which is a

product around which revolves all the remaining three Ps. A product is thecomposite of its substance, packaging, label, brand and trademark.

A product includes: Goods Service

Goods are tangible, sold, can be touched and seen. E.g. cars, books,calculators, etc. Services on the other hand are intangible goods, invisible and canonly be sensed or perceived. When we sell goods we also sell services like

guarantee, warranty, home delivery, after-sales services etc.Selling a product requires an effective policy, which can only be set on thefollowing considerations.

P roduct Considerations :

1. New Product Planning2. New Product Development3. Innovation4. Life Cycle5. Product Differentiation6. Making New Products Successful

2. PRICING : (Second P of marketing)Price is the amount of money paid for buying goods and services. The

best price is the one at which the manufacturer, the seller and the customer agree. Price is determined according to demand and supply. If demand is highthe price will be high. If the supply is abundant the price will be low.

PRICE DETERMINING FACTORS / PRICE STRATEGY


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1. Competition and its nature (with both local and foreign goods)2. The Purchasing Power and social status of the customer 3. Nature of advertising and other promotional mean4. Cost of production and distribution5. The position of demand and supply

6. Customers knowledge of the market7. National and international economic conditions8. Govt. control & laws9. Sellers profit margin10. Buyers view of the product

CLASSIFICATION OF PRICES :

Low Price policy: Under this policy, the seller deals in low priced goods. Theobjective is to bring maximum turnover.

High Price policy: This sales philosophy demands to deal in high priced andquality merchandise to attract only high income gentrys e.g. jewelry, cigars,cameras etc

Stable Price policy: This policy calls for maintaining the price at a certain levelover a long period of time, although the rates of other goods keep changing.

Odd Price policy: Here the policy gives a psychological touch to the productand its price. The prices gives the impression that they are lower than thedenomination e.g. R s 99 Rs.499.00 etc

Fixed Price policy: Here all the customers are treated alike and charged thesame price for a product.

Varying Price policy: Under this policy, every customer is charged differentlyand prices can be bargained. Customers with poor bargaining or haggling abilityare losers.

Delivered Price policy: When the goods are delivered at the door of the buyer certain cost incurred, hence prices include all transportation and insurancecharges.

Free on Board policy : This policy refers to the price which the sellersundertake to deliver the product on board the ship without explicitly, chargingtransportation and insurance expenses

One Price police : Here such goods are offered for sale which are more or lessof the same price e.g. (ten dollar store, five. Dollar store etc ).

3. PLACE : (Third P of Marketing )


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.CHANNELS OF DISTRIBUTION:

Channels of distributions are one of the parts of marketing mix.Channels are the mean through which goods move from producers to consumers. Theyare filled by middlemen who are those traders that exist in between producers andconsumers. They include wholesalers, retailers, distributors etc.

Channels of distributions can be divided as:A. Direct ChannelB. Indirect Channel

A. Direct Channel :It is the channel where manufactures and consumers have direct

link and there exist no middlemen. Its example is as follows

Producer Consumer

The direct channel used under following conditions:

The production is small. The distribution is limited and local. The goals are fast perished. The channel is established traditionally. Industrial goods use this channel.

ADVANTAGES:

Prices are comparatively low because middlemens commission is saved. Fresh goods are made available to consumers. Direct link between producers and consumers putting a favorable effect on

business.

C. Indirect Channel :It is the channel which has one or more middlemen between the

producer and the consumer.

It is used under the following conditions:

It is suitable when specialized services of middlemen are necessary. If the production is in large amount this channel becomes compulsory.

The larger the production the greater the number of middlemen may berequired.

For wide distribution this channel is required. The nature or the product or established practice of the industry or the

product also needs this channel.

ADVANTAGES:


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Consumers may buy goods produced far from their home place. Imports and exports become possible. A wide variety of goods can be made available. Healthy competition is promoted benefiting both buyers and sellers.

3. PROMOTION : (Fourth P of Marketing) Promotion refers to methods adopted to introduce products to the

prospective customer.

Promotion has the following methods:

PROMOTIONAL METHODS

Promotion has the following methods: Advertising. Publicity. Salesmanship. Other methods.

ADVERTISING: Advertising is a paid form of non-personal presentation of

goods and services to a group of persons by an identified sponsor. It is differentfrom personal selling, publicity, public relations and sales promotion.

By advertising the goods and services are introduced togeneral public, customers and consumers. Through it a message is given aboutthe brand, price, quality, variety and features of a product. Customers becomewell aware of competitive brands and able to choose the best one from amongthe variety available.

Media of advertising:1. Print media (e.g. newspaper, pamphlets etc).2. Electronic media (Audio media, video media).

4. PUBLICITY: According to a marketing expert, Publicity is a nonpersonal form of demand stimulation and is not paid for by theperson or organization benefiting from it .

Publicity is resorted to establish goodwill in the market. It isindirect selling and impersonal unpaid form of promoting goods and services. It actsas a tool of public relations.

SALESMANSHIP:


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According to Robert A. Isaac, salesmanship is the presentation of a promotional message through direct personal contact. It is amethod of offering goods and services to the prospective customers by the personknown as salesman. It facilitates face to face contact between the buyer and the

seller and any inquiry about the product can be immediately answered.Product selling with salesmanship requires the following steps.

Sell the company: Make the firm acceptable to the consumer. Sell the personality: The salesman must convince the consumer that he is reliable,

true, honest and competent. Sell the product: Once above two steps are successfully accomplished getting the

product acceptable to the customer is difficult.

OTHER SALES PROMOTION METHOD:

Exhibitions and fairs Sales Bonus schemes Sponsorship Rebate and Coupons Courtesy Advertising Samples Fashion Shows Refunding Sales Returns etc

MADE BY: SYED NABEEL HASANID: BB-2500PROGRAM: BBASEMISTER: SPRING II

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4 P of Marketing Complete Full