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  • 4Ps of Marketing (Marketing Mix) - 2!17!11

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    The 4Ps of marketing are product, price, place, and promotion. For product, companies consider the type of product (convenience, shopping, specialty) and its lifecycle (introduction, growth, maturity, decline). For price, strategies include skimming, penetration, competitive, cost-based, and target profit pricing. Pricing also considers elasticity. For place, distribution strategies are used. For promotion, companies advertise and raise awareness of their product.

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    4Ps of Marketing (Marketing Mix)-2!17!11

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    The 4Ps of marketing are product, price, place, and promotion. For product, companies consider the type of product (convenience, shopping, specialty) and its lifecycle (introduction, growth, maturity, decline). For price, strategies include skimming, penetration, competitive, cost-based, and target profit pricing. Pricing also considers elasticity. For place, distribution strategies are used. For promotion, companies advertise and raise awareness of their product.

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    16 views4 pages

    4Ps of Marketing (Marketing Mix) - 2!17!11

    Uploaded by

    schalaric
    The 4Ps of marketing are product, price, place, and promotion. For product, companies consider the type of product (convenience, shopping, specialty) and its lifecycle (introduction, growth, maturity, decline). For price, strategies include skimming, penetration, competitive, cost-based, and target profit pricing. Pricing also considers elasticity. For place, distribution strategies are used. For promotion, companies advertise and raise awareness of their product.

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    of 4

    4Ps of Marketing (Marketing Mix)

    The company starts out with a product, then they price it, they will then place it and finally they will
    promote it

    Product

    Classification

    Convenience

    - Makes life easier


    - Buys these products often
    - Does not shop around too much
    - Shoppers Drug Mart

    Shopping-

    - Consumers will shop around for the product


    - Cars, Computer, TVs
    - High price, long life
    - More thought

    Specialty

    - Unique
    - Rare
    - Hard to find
    - Loyalty
    - Travel to get

    Product Life Cycle

    Intro

    - Product is brought into the marketplace

    Growth

    - The product’s market share is getting larger


    - Promotion increases
    - Peak Profit
    Maturity

    - Peaks Highest Sales


    - Solid Awareness

    Decline

    - Sales Fall
    - People stop caring
    - Caused by action of competitor

    MP AP

    Market Product= Change in Output * Increase in Labor


    Average Product= Output/Number of Labors

    L Q MP AP
    0 0 n/a n/a
    1 2 2/1=2 2/1=2
    2 5 3/1=3 5/2=2.5
    3 10 5/1=5 10/3=3.3

    Law of Diminishing Returns- eventually workers will start to give you less when there are too
    many of them
    Pricing

    Skim

    - New Products
    - The price is set at a certain level (high price).
    - Lower the price at small demand in order to increase demand
    - Early adopters / buyers

    Penetration

    - Low price then Higher price


    - Rush of customer= profit
    - When customer base is established and then the price will eventually increase

    Competitive Pricing

    - Price that is based on the competition


    - Fast food/ gas/ airline

    Cost Based

    - Cost +
    - or Markup %

    Target Profit

    - Based off of the desired profit

    Price Elasticity

    - Elastic- when demand changes when there is a price changes


    - Non Elastic- demand does not change when the price changes
    - Inelastic products- products that people will continue to buy no matter the cost. There are no
    alternatives for the product that is required.

    Pricing Strategies

    Discount

    - Low prices, No changes in price

    - Costco, Wal-Mart
    Segmented

    -Will be price based on location in the city

    Geographic

    - Where you are in the country


    - What is costs for the items to buy there

    International

    - Where you are in the world


    - Costs are based on location

    Promotional Pricing

    - The Brick
    - When there seems to always be a sale on the objects

    Psychological

    - When something goes on sale for .99 cents or 99 dollars

    Loss Leader

    - It is on sale until a certain time


    - One object is lowered, the rest are the same price

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