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Marketing Mix.

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Marketing Mix The most important thing about marketing is to identify what the consumers' needs are, and then try to meet them. This is called consumer-orientation. To find out what these needs are, a firm's marketing department or a specialist research organisation carry out extensive market research. The 4Ps and the marketing mix The 4Ps are the ideas to consider when marketing a product. They form the basis of the marketing mix. Getting this mix right is critical in order to successfully market a product. The 4Ps are: 1. Product 2. Price 3. Promotion 4. Place If market research is carried out effectively, a company can plan a promotion for the right product, at the right price, and to get it to their chosen market, in the right place. Product A product can be either goods or a service that is sold either to a commercial customer or an end consumer. A customer buys a product, and a consumer uses it. ...read more.


This does not just mean being cheaper than competitors. Most people associate a higher price with quality, so you would expect to pay more for a Rolls Royce than for a Lada. On the other hand, is one cola worth more than another, and if so, how much? As a rule, a producer of luxury or medical products will use skim pricing or premium pricing initially, in order to maximize its profits. This is useful, as it helps them to recover expensive research and development costs quickly. For FMCG's (fast moving consumable goods) like colas, penetration pricing is usually used. The firm will want a large share of the market; so will settle for a small profit on each item. In the long term, they hope that the turnover, and therefore their profits, will be high. The simplest method of all is cost-plus pricing, where a firm adds a profit mark-up to the unit cost. Promotion The main aims of promotion are to persuade, inform and make people more aware of a brand, as well as improving sales figures. ...read more.


For the firm, they can cut out the middleman in the process, and can therefore make more profit. Going through wholesalers and high-street retailers, however, is the most popular form of distribution, as that is still where most people shop. Marketing Process A firm will gather information about the marketplace (e.g. whether house prices are rising or falling), and then research consumers' needs. From this, it will identify who its market is, and then put together a marketing plan based on the findings. The marketing mix will be central to this, and finding the right balance in each of the 4Ps is very important. The firm can then review and adapt their plan when they need to. You should remember the following points: * Although marketing is consumer-orientated, the main aim is still to be profitable. * A good marketing manager will try to differentiate their product (i.e. make their product stand out against similar competitive brands). * Whatever pricing decision is made, the most important factor is to break even. * Making it as easy as possible for the customer to buy the product will help sales to increase. Fadil Channer 11th October 2003 Business Studies ...read more.

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