Published Nov. To concoct a delicious meal, a cook must balance the right ingredients carefully. A dash of salt, a splash of hot sauce, a pinch of garlic.
Miss an ingredient or dump in a tablespoon of salt when you only need a teaspoon and the whole meal is ruined. Together, they get your product in front of the likeliest purchasers at the right price. It was a revolutionary concept. Instead of just defining what marketing was, McCarthy sought to improve marketing practices by borrowing from fields such as sociology and psychology to gain insight into consumer behavior. Read on to see why each P is so important, and how they fit into the overall marketing mix for your small business.
Still, the concept is the same for both. In real estate, where your property is located is more important than its size or condition.
Understanding the Marketing Mix: The 4 P’s of Marketing
In marketing, where and how your customer is exposed to your product is the foundation for any successful marketing mix. Even in the s, a parched consumer could stroll into the local general store and spot a bottle of Coca-Cola with minimal effort.
Where your product appears on the internet is even more important than where it appears in the physical world. Because your reach in the physical world is limited by physical space, while your reach online can be global.
For example, is your product promoted on the front page of Amazon, or an obscure web site? The important question that marketers must ask themselves is: how can I make it easier for customers to find my product? And work from there. There are many factors that come into play when determining the price of your product or service, such as:. But beyond those factors, there are situations when companies artificially inflate the price of a product to increase perceived value, or even charge less than a product is really worth to build customer loyalty.
Do you want to be known as the high-end, but also high-priced option for the elite? Or do you want to be known as the customer-friendly, affordable value option for the masses? The first option typically means higher profits but fewer sales, while the second option usually yields a higher volume of sales but a smaller profit margin. Even if your product is intangible, such as an insurance policy or consulting service, it should still stand out in the marketplace either because it does something that nothing else in the market does, or because it does—or at least strives to do—something better than everything else on the market.Nike offers a wide range of products including shoes, apparel and equipment.
The products in Nike's marketing mix are focused on high quality and wide variety of goods for sports enthusiasts. It is the market leader in sportswear industry and derives its maximum revenue from sale of sport shoes.
It offers great variety of products including special type of shoes for every category of sports. For eg. Nike has adapted to the changing times are now designing and selling smart products which have capability of connect to iPod nano bringing about the combination of products from Apple Inc and Nike which measure the performance of the sportsperson. Besides these, NIKEid is an innovative sub brand of Nike which allows its customers to design and customize the features of their desired products as per their requirements which attracts the greater audience.
Nike also offers new service of personal trainer to its consumers for various types of sports. Nike is a market leader in the sportswear and sports equipment and employs value based pricing strategy to facilitate growth in sales and profits of the company. By this strategy, Nike measures the value customer is willing to pay for every product.
Now this value is used in determining the maximum price the customer is willing to pay for Nike's shoes, apparels or sports equipment. This strategy has largely benefited the company continuously raising its profits over last 5 years.
The pricing is carried out targeting the consumers of the premium segment. By this strategy company caters to the niche market yet maintains its loyal customer base of customers paying premium price for its value added products. Retailers are the most significant places where its products are sold.
In America Nike has more thanretailers and has its presence in more than countries in the world. Nike has its manufacturing units in almost every country to minimize the logistics costs and getter better efficiency in the distribution. The density of stores across the city is so high in India that Nike poses great competition to Adidas, reebok and its rival brands. Nike uses E commerce websites like flipkart, amazon for sale of its products. By this Nike gets to showcase its almost every product reaching out to millions of users over the internet.
Nike exclusive stores are very common in almost every city and suburb in the country catering to the requirements of consumers of specific geography. Nike as a brand is known for its strong branding and marketing activities. Nike carries out exhaustive promotions through online campaigns over Youtube, Instagram and Facebook reaching out to millions of its fans. Nike also grabs opportunity to project its brand by sponsoring to marathons, international events such as NBA basketball championship.
It employs great media coverage through electronic, social and print media promoting about its brand image making smart use of push as well as pull strategy for its consumers. Bulk discounts, timely discounts through online and offline stores attract millions of consumers every day and catches mass attention at a bigger sale.
This summarized the Nike marketing mix. Found inNike is an American conglomerate has its presence in engaged in manufacturing, design, development, and worldwide marketing and sales of apparel, footwear, equipment, accessories and services. It is one of the world's largest manufacturers and suppliers of athletic shoes, sportswear and a major manufacturer of sports equipment.
Nike also offers products for aquatic activities, tennis, skateboarding, golf, association football, baseball, football, cycling, volleyball, wrestling etc. The Marketing Mix section covers 4Ps and 7Ps of more than brands in 2 categories. What is MBA Skool? About Us. Write for Us! Quizzes test your expertise in business and Skill tests evaluate your management traits.The last element of the marketing mix is the place.
Also called placement or distributionthis is the process and methods used to bring the product or service to the consumer. In the marketing mix, the process of moving products from the producer to the intended user is called place.
In other words, it is how your product is bought and where it is bought. This movement could be through a combination of intermediaries such as distributors, wholesalers and retailers. In addition, a newer method is the internet which itself is a marketplace now.
Through the use of the right place, a company can increase sales and maintain these over a longer period of time. In turn, this would mean a greater share of the market and increased revenues and profits.
Correct placement is a vital activity that is focused on reaching the right target audience at the right time. It focuses on where the business is located, where the target market is placed, how best to connect these two, how to store goods in the interim and how to eventually transport them.
Understanding the Marketing Mix: The 4 P’s of Marketing
A distribution channel can be defined as the activities and processes required to move a product from the producer to the consumer. Also included in the channel are the intermediaries that are involved in this movement in any capacity. These intermediaries are third party companies that act as wholesalers, transporters, retailers and provide warehouse facilities.
In this channel, the manufacturer directly provides the product to the consumer. In this instance, the business may own all elements of its distribution channel or sell through a specific retail location. Internet sales and one on one meetings are also ways to sell directly to the consumer.
One benefit of this method is that the company has complete control over the product, its image at all stages and the user experience. In this channel, a company will use an intermediary to sell a product to the consumer. The company may sell to a wholesaler who further distributes to retail outlets. This may raise product costs since each intermediary will get their percentage of the profits.
This channel may become necessary for large producers who sell through hundreds of small retailers. In this type of channel, a company may use a combination of direct and indirect selling. The product may be sold directly to a consumer, while in other cases it may be sold through intermediaries.
This type of channel may help reach more consumers but there may be the danger of channel conflict. The user experience may vary and an inconsistent image for the product and a related service may begin to take hold. The last, most non tradition channel allows for the consumer to send a product to the producer. This reverse flow is what distinguishes this method from the others.
An example of this is when a consumer recycles and makes money from this activity.Thinking critical care program
Distribution channel intermediaries are middlemen who play a crucial role in the distribution process. These middlemen facilitate the distribution process through their experience and expertise. There are four main types of intermediaries:. Agents The agent is an independent entity who acts as an extension of the producer by representing them to the user.
An agent never actually gains ownership of the product and usually make money from commissions and fees paid for their services. Wholesalers Wholesalers are also independent entities. But they actually purchase goods from a producer in bulk and store them in warehouses.
These goods are then resold in smaller amounts at a profit.Gamblers anonymous philosophy theory of learning
Wholesalers seldom sell directly to an end user. Their customers are usually another intermediary such as a retailer. Distributors Similar to wholesalers, distributors differ in one regard.The marketing mix is an essential tool in building and implementing an effective marketing strategy.
It should be used to show prospects why your product or service is different and better than your competitors. The marketing mix, also referred to as the 4 Ps, is comprised of four main pieces — Products, Price, Promotion and Place. The 4Ps describe what marketers can control and are the most critical elements when building your marketing strategy.
Image Source: bbc. Product is concerned with developing the right product or service for your target market. Your product or service must satisfy a specific consumer need. Kaffeinea London-based coffee shop, attracts customers by branding their business and products as hassle-free and friendly. They use their shop design of crumbling brick walls and comfy wooden crate benches to create an image visitors can easily align with their brand.
When setting a price for your product, you must consider competition in your target market place, and the cost of the total marketing mix. Placement decisions, such as accessing the right distribution channels, should take into consideration where customers would expect to find a product or service like yours. Part of the place decision is also the layout of your store or shop. It should pull customers into your shop, making it easy for them to locate merchandise. This is about telling your target market about your product or service.
It involves direct communication between sellers and potential customers. ITC Luxury Travel uses various means of communication with their customers and promotion for their services. Their Newsletter sign-up offers yet another opportunity for product promotion.
If the 4Ps seem outdated to you, try R. Image Source: marketingmix. Your marketing mix provides a roadmap for your business objectives. It keeps you on track, while keeping your target market in the forefront of your mind. Your marketing mix will help you make sure your business is marketing the right product, to the right people, at the right price and time.Place
Use these 10 steps to assist you in building your perfect marketing mix for a successful product offering.Times Internet Limited. All rights reserved. For reprint rights. Times Syndication Service. Globe Icon An icon of the world globe. Amazon Sale Tech Business. Link Copied. Marketing Mix can be defined as the set of marketing variables that a business implements for the purpose of evincing a desired response in the target market.
In other words, marketing mix can be said to be a very important marketing tool that consists of all the elements that impact the demand for the products that a firm offers. To elaborate on the idea, we can say that marketing mix denotes the set of actions or strategies that a firm uses for the sake of promoting its brand or product in the market. The important components of Marketing Mix 4Ps of marketing Traditionally speaking, the four important components of a typical marketing mix include Price, Product, Promotion and Place.
Popular on BI. Trending News. Buying Guides. Amazon prepares for the Mukesh Ambani challenge with a bet on Future Group — but Kishore Biyani's shareholders aren't happy. Take Machine Learning from University of Wash Read More.Leadership Skills:. Subscribe to our FREE newsletter and start improving your life in just 5 minutes a day. The Seven Ps of Marketing is a relatively simple framework that can be used by any organisation or manager to plan marketing activities and a marketing strategy.
It is useful because it ensures that you look across each area together, and consider how they might be related. The Seven Ps started as just four: product, price, place and promotion. Over time, as marketers became more aware, and practices and businesses changed, three more have been added: people, processes, and physical evidence. This page explores each of these areas in turn, looking at the important aspects to consider when planning marketing activity.
Apple is said to have developed the iPod without checking for customer demand first. Steve Jobs was apparently convinced — correctly, as it turned out — that people would want to buy his product. History, however, is littered with less successful examples of companies who have developed a product first, and worried about finding customers later.
It is true that customers do not always know what they want.
The 7 Ps of Marketing Mix
They do, however, often have an idea of what they lack, or the problem they are trying to solve. Doing some good customer research in advance of any development costs will ensure that you do not waste any time or money on products that nobody wants to buy.Apa bibliography page picture frame design
It is also helpful to check back with your customers during the development to ensure that you are still developing the right product. In particular, check that you are not over-engineering the quality: sometimes good enough is all that is necessary or required.Abraham lincoln second inaugural address thesis
The price that you charge is important, because it will determine the profit that you make on the product or service. It must, therefore, be greater than the cost of producing the goods or services. However, a product is only worth what someone is prepared to pay for it, so it needs to be priced competitively: consistent with what others are charging for similar goods or services.
Research shows that delivery of goods bought online is very important to overall customer satisfaction, so should be a part of your overall strategy.
It is designed to show customers why they should buy your product or serviceand should therefore focus on benefits, and not just features.Literature terms flat feet reviews
Perhaps the most important thing to remember is that promotion is NOT one-way. Instead, you should see it as the way to start a conversation with your customers, and with your employees, who also need to understand the product. It is important to look at a variety of channels, including print, online and mobile. Your promotion activity should focus on where your customers are, whether that is particular social media sites, or newspapers.
Your customers are unlikely to separate the product or service from those who provide it. Your staff—and that means anyone who comes into contact with customers, even remotely, through something that they have written for the company website—are therefore vital. They will have an important effect on customer satisfaction.
This is even more important now, because so many people are active on social media, and staff therefore can and will communicate with customers directly. Staff will need to be adequately trained to understand their importance, and how to deal with customers.
Based on our popular management and analysis content the Skills You Need Guide to Business Strategy and Analysis is a straightforward and practical guide to business analysis. This eBook is designed to give you the skills to help you understand your business, your market and your competitors. It will help you understand why business analysis is important for strategy—and then enable you to use analytical tools effectively to position your business.
Processes was originally added for service industries, but there is increasing recognition that processes also affect customer experience in product companies. The experience starts from the first point of contact, and goes on until after the sale, including after-sales service.
The process of handling customers at first contact, during sales and beyond, is therefore crucial to overall customer satisfaction.Where you sell the product or service. This means the location of your shop, or outlet, or the accessibility of your service — how easy it is to access. How you tell consumers about the product or service.
The promotional mix isa blend of the promotional tools used to communicate about the product or service — forexample, TV advertising. These are some common phrases and expressions that you can use when you talk about the Marketing Mix. These are some key phrases that you can use when talking about something related to the Marketing mix.
They have to listen to the first dialogue and complete the sentences then they listen to the second one and they have to unscramble sentences to form the dialogue.
They are given similar sentences to make it more interesting and challenging. The students will select a product and they will talk about the the marketing mix of that specific product:. Students will be shown a pciture and they have to write the basic characteristics of that marketing campaign. Time for an integrated activity, a quiz in which your listening, reading, writing will be tested.
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