The 4 P’s of marketing mix are discussed as follow:-
Product Mix - includes all those activities starting from the conception of the idea of a product till its final developments for maximizing the customers’ satisfaction. It involves planning and development of product directed at the satisfaction of target market. It entails decision making regarding the quality, quantity, size packing etc. of the product.
Elements Of Product Mix
The main features of product mix are as follow
Product range: - It implies the closely related items of the same product. For eg. The product range of the Maruti Udyog limited is Maruti 800, Maruti waganR etc.
Branding refers to the use if certain mark, symbol etc it helps in dividing the types of the same goods.
Product package -Packaging means to wrap or containing the goods for supply.
Product services after sale services are an important component of a product mix. It enables the firm to secure repeat orders and also secure the goodwill of the customers. This kind of services is providing for the limited period only.
Price: - price is the value of a product or services in terms of money which is paid by the customers. It is actually the value for the satisfaction of needs and wants of the consumers
Price strategies
The price strategies generally followed by a business enterprise are as under:-
Market skimming pricing: - It means that price should be fixed at the high rate. It may be reduced in later. This policy is followed to cover up the huge research expense and to earn healthy profits.
Suitability
Marketing penetration pricing: - it refers that to fix the price at the low rate while launching with the objective to penetrate in the market. If the demand is high the price may be rised.
Suitability
Discount and allowances: - It is a market strategy regarding grant of discounts and allowances on the sale of goods. It involves decision –making concerning quantity discount, trade discounts cash discounts etc.
Profits margin: - it is another important factor for determine the pricing strategy. The most important margin mainly depends upon the nature of goods and intensity of competition.
The cost of product: - the cost of the product is the most important determinant of choosing the pricing strategy of a product.
Place: -the place factor refers to the physical distribution of goods as well as the channel of distribution involves all those activities which are concerned with the efficient movement of product. A channel is a live organ of marketing. A channel of distribution is an organized network or a system of agencies and institution which are necessary to accomplish the marketing task.
Elements of place mix
Following are the main elements of place mix:-
Channels of distribution: - It encompasses the decision making regarding the distribution of goods either through wholesalers and retailers or through agencies.
Inventory capital - inventory level should be neither less nor more. An inventory requirement depends upon economic conditions, weather conditions, supply and demand of goods.
Transport: - it involves decision-making regarding the selection of mood of transport i.e. railway, airway or roadway for the supply of goods.
Storage: - storing or warehousing is the component of place mix which creates time utility. It strikes a balance between demand and supply.
Promotion
Promotion implies informing the customers about product and services and persude them to buy. Promotion mix is persuasive in nature. It creates demand of the products of the firm. It involves a decision making regarding the use of promotional tools such as personal selling, advertisement etc.
Elements of promotion mix: - it is an impersonal message. It is conveyed in written, spoken or visual form to the prospective customers to persuade them to buy the firm products,
Personal selling: - it is an art of persuasion customer to buy the product at the spot.
Sales promotion: - it an inducement to customer to buy product by offering them to various schemes, coupons etc
Publicity: - it is a non- paid news items about a company, its product and brand name.
Product Mix - includes all those activities starting from the conception of the idea of a product till its final developments for maximizing the customers’ satisfaction. It involves planning and development of product directed at the satisfaction of target market. It entails decision making regarding the quality, quantity, size packing etc. of the product.
Elements Of Product Mix
The main features of product mix are as follow
Product range: - It implies the closely related items of the same product. For eg. The product range of the Maruti Udyog limited is Maruti 800, Maruti waganR etc.
Branding refers to the use if certain mark, symbol etc it helps in dividing the types of the same goods.
Product package -Packaging means to wrap or containing the goods for supply.
Product services after sale services are an important component of a product mix. It enables the firm to secure repeat orders and also secure the goodwill of the customers. This kind of services is providing for the limited period only.
Price: - price is the value of a product or services in terms of money which is paid by the customers. It is actually the value for the satisfaction of needs and wants of the consumers
Price strategies
The price strategies generally followed by a business enterprise are as under:-
Market skimming pricing: - It means that price should be fixed at the high rate. It may be reduced in later. This policy is followed to cover up the huge research expense and to earn healthy profits.
Suitability
- New product has distinctive features and highly desire by the customers
- When the demand of a product inelastic
- When the new product is protected against competitors
Marketing penetration pricing: - it refers that to fix the price at the low rate while launching with the objective to penetrate in the market. If the demand is high the price may be rised.
Suitability
- There is large market of product
- Demand is highly elastic
- Large scale production is possible
- Market is highly expensive
Discount and allowances: - It is a market strategy regarding grant of discounts and allowances on the sale of goods. It involves decision –making concerning quantity discount, trade discounts cash discounts etc.
Profits margin: - it is another important factor for determine the pricing strategy. The most important margin mainly depends upon the nature of goods and intensity of competition.
The cost of product: - the cost of the product is the most important determinant of choosing the pricing strategy of a product.
Place: -the place factor refers to the physical distribution of goods as well as the channel of distribution involves all those activities which are concerned with the efficient movement of product. A channel is a live organ of marketing. A channel of distribution is an organized network or a system of agencies and institution which are necessary to accomplish the marketing task.
Elements of place mix
Following are the main elements of place mix:-
Channels of distribution: - It encompasses the decision making regarding the distribution of goods either through wholesalers and retailers or through agencies.
Inventory capital - inventory level should be neither less nor more. An inventory requirement depends upon economic conditions, weather conditions, supply and demand of goods.
Transport: - it involves decision-making regarding the selection of mood of transport i.e. railway, airway or roadway for the supply of goods.
Storage: - storing or warehousing is the component of place mix which creates time utility. It strikes a balance between demand and supply.
Promotion
Promotion implies informing the customers about product and services and persude them to buy. Promotion mix is persuasive in nature. It creates demand of the products of the firm. It involves a decision making regarding the use of promotional tools such as personal selling, advertisement etc.
Elements of promotion mix: - it is an impersonal message. It is conveyed in written, spoken or visual form to the prospective customers to persuade them to buy the firm products,
Personal selling: - it is an art of persuasion customer to buy the product at the spot.
Sales promotion: - it an inducement to customer to buy product by offering them to various schemes, coupons etc
Publicity: - it is a non- paid news items about a company, its product and brand name.
Comments
Post a Comment