3. Product
The product is the first element in the
marketing mix.
After identifying a need in the market, a company
may already have
a product that is capable of satisfying the need.the
following question should be asked:
1.What is the product’s
function,appearance,quality,design,features,packaging and brand?
2.What need does it satisfy ?
3.What value does it offer to its customers?
4.What makes it unique?
5.What is its unique selling proposition(USP)
4. Price
The price that a marketer charges for a
product or service is a vital decision that has
far reaching consequences. From the point
of view of the business ,product and services
are offered with the intention of making a
profit .However, the customer has a specific
price in mind that he consider as “fair ”and “
equitable”. This is related to the value or
benefit that he expects to derive from the
product or service . This makes pricing tricky
and challenging for marketers.
5. Pricing
strategies:
1.Mark- up pricing
Is a pricing strategy that allows the seller a fixed mark up
everytime the product it sold.
2.Target return pricing
is the method that allows a product manufacturer to recover a
certain portion of his/her investment every year.
3.Odd pricing or Psychological pricing
is pricing method premised to the theory that consumers will
perceive products with odd price endings as lower in price than they
actually are.
4.Loss leader pricing
is a pricing strategy frequently utilized by supermarkets.
5.Price lining
a pricing strategy design to simplify a consumers buying decision.
6. 6.Prestige pricing
a pricing strategy that disregards the unit cost of a product or a
service.instead,it capitalizes on the high value perception or positive
brand reputation of a product or service.
7.Marginal pricing
where a business organization prices its product at a range
below its unit cost but higher than its unit variable cost.
8.Predatory pricing
a pricing strategy where the firm prices its product lower than
unit variable cost,initially resulting in short-term losses.
9.Going rate pricing
a pricing strategy where a company prices its product at the
same level as or very close to its competitors prices.
10.Promotional pricing
a pricing strategy involving a temporary deduction in the
selling price of a product/or service in order to induce trial or to
encourage repeat purchase.
7. place
How can a company deliver its product to its costumer
effectively and effeciently?
This is the next vital marketing decision.similar to the first
P(product).product distribution decision are almost
permanent,as distribution channels do not change on a
daily basis.the product type is also a major consideration in
deciding the type of distribution channel or intermediary
.mass market or fast-moving consumer goods may require
intensive distribution,while products like expensive
fragrances may necciciate only selective,if not
expensive,distribution .
8. Product Distribution Types
There are three general ways on how general product can be
distributed using marketing intermidiaries.
1.Exclusive distribution
distribution is limited a select numbers of dealers ,usually
one or a few.
2.Intensive distribution
this product distribution type, used mostly by fast moving
consumer convenience goods,involves making a product available in as
many retail outlets as possible
3.Selective distribution
positioned between exclusive and intensive distribution ,this
type of distribution involve the use of more than one but not as many
dealers as in intensive distribution.
9. Wholesaling and Retailing
wholesalers and retailers are two of the most crucial distribution
intermidiaries,most especially in providing place utility for product customers.
WHOLESALING
is the sale of goods for resale . Whole saling is an important product
distribution function .Without wholesaler product manufacturer would have to
deliver goods directly to retailers.
Key functions of wholesaling and retailing .
• Information,collection and dessimination
•Bulk-breaking
•Assortment –building
•Product storage and transportation
•Financing
•Risk-taking
10. PROMOTION
Is the general terms which include the
following;advertising,promotions,personal
selling,publicity,and public relations.
Advertising
is defined as any paid public presentation of products , services or
ideas, by an identified sponsors through a medium.The most
objectives advertising are:
•To build awareness
•To inform
•To persuade
•To remind
11. These are essentially two types of
promotion
• Trade promotions
trade promotions are intended for marketing intermidiaries such
as retailers.
• Consumer promotion
consumers promotion, on the other hand, are intendend for
consumers.
