THE FOUR P’S

THE FOUR P’S

Buy, selling, market research, transportation, storage, advertising – these are all parts of the complex area of business known as marketing. In simple terms, marketing means the movement of goods and services from manufacturer  to customer in order to satisfy the customer and to achieve the company’s objectives. Marketing can be dividen into four main elements that are popularly known as the four p’s: product, price, placement, and promotion. Each one plays a vital role in the success or failure of the marketing operation.

The product element of marketing refers to the good or service that a company wants to sell. This ofter involvesre search and  development (R&D) of new product, research of the potential marketing , testing of product to insure quality, and then introduction to the market.

A company next considers the prince to charge for its product. There are three pricing options  the company  may  take: above, with, or below the princes that its competitors are charging. For  example, if the average of a pair of women learther shoes is $27, a company  that charges $23 has priced below the  market; a company  that charges $27 has priced with the market; and a company that charges $33 has priced above the market. Most companies  prince with the market  and sell their goods or services  for average prices established by major producers in the industry. The producers who establish these prince are known as price leaders.

 The third element  of the marketing process-plancement-involves  getting  the product  to the customer. This takes place through the channels of distribution. A common channel distributon is :

Manufaktur                        wholesarel                            retailer                         customer

Wholesalers generally  sell  lage quantities of product retailer, and retailer usually sell smaller quantites to customer.

Finally, comunication about the product takes place between buyer and seller. This communication buyer and seller is known as promotion. There are two major way promotion occurs; though personal selling, as in department store, through advertising, as in a newspaper or magazine.

The four elements of marketing-product, price, placement, and promotion-work together to developa successful marketing operation that satisfies customers and achieves the company objectives. (Taken from Business  Concept  For English Practice by Barbara Tolley Dowling and Mariane MCDougal ).

Marketing decisions generally fall into the following four controllable categories:

·                     Product

·                     Price

·                     Place (distribution)

·                     Promotion

Product Decisions

The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:

·                     Brand name

·                     Functionality

·                     Styling

·                     Quality

·                     Safety

·                     Packaging

·                     Repairs and Support

·                     Warranty

·                     Accessories and services

Price Decisions

Some examples of pricing decisions to be made include:

·                     Pricing strategy (skim, penetration, etc.)

·                     Suggested retail price

·                     Volume discounts and wholesale pricing

·                     Cash and early payment discounts

·                     Seasonal pricing

·                     Bundling

·                     Price flexibility

·                     Price discrimination

Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution decisions include:

·                     Distribution channels

·                     Market coverage (inclusive, selective, or exclusive distribution)

·                     Specific channel members

·                     Inventory management

·                     Warehousing

·                     Distribution centers

·                     Order processing

·                     Transportation

·                     Reverse logistics

Promotion Decisions

In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:

·                     Promotional strategy (push, pull, etc.)

·                     Advertising

·                     Personal selling & sales force

·                     Sales promotions

·                     Public relations & publicity

·                     Marketing communications budget

Limitations of the Marketing Mix Framework

The marketing mix framework was particularly useful in the early days of the marketing conceptwhen physical products represented a larger portion of the economy. Today, with marketing more integrated into organizations and with a wider variety of products and markets, some authors have attempted to extend its usefulness by proposing a fifth P, such as packaging, people, process, etc. Today however, the marketing mix most commonly remains based on the 4 P's. Despite its limitations and perhaps because of its simplicity, the use of this framework remains strong and many marketing textbooks have been organized around it.

Conclusion  :  in marketing there are four factors to be considered, namely product, price, place (distributor), the promotion of the dam to the proficiency level 4 factors must be fully completed

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