2.1.

1 Product
Product is the first element of marketing mix. If the stockholders decide to
build a new company, they have to carefully decide what products to be
sold and compete in the market. The choice of product is the key success
of the company. From the product which the company produce, the
management could build a consumers trust as well. If the market, which is
the consumer, clearly accepted the product then they will automatically
put the good image and trust into the product and the company at the
same time. When the company have got the consumers loyalty, then the
company will easily get the high revenue regularly. Product is the goods
and services combination the firm offers to the target market, including
variety of product mix, features, designs, packaging, sizes, services,
warrantees and return policies (Larry Steven Londre, 2009).

Marketing Mix

Items
What product are you
selling?
What would be the
quality of your product?

Product

Which features are

different from the
market?
What are the
secondary products
which can be sold
along with primary?

1. Goods
Goods is tangible thing that the company can offers to the market for
attention, acquisition, use or consumption that might satisfy a want or
need (Kotler). Product includes packaging, as a subset of the total
offering. Brand managers use packaging as a badge, enhancing the
products value (Larry Steven Londre, 2009).
2. Services
Any activity or benefit that one party can offer to another that is
essentially intangible and does not result in the ownership of anything
(Kotler).
2.1.2 Price
All aspects regarding pricing. The price consumers are willing to pay. Retail
price/wholesale, discounts, trade-in allowances, quantity discounts, credit
terms, sales and payment periods (Larry Steven Londre, 2009). Price is
determined by calculating all the expenses;
- Operating expenses

- Financing expenses
- Investing expenses
The final report of all those expenses is called Statement of Cash Flows. In
this Statement of Cash Flows the company could see several significant
differences, the increasing or decreasing of their receivables and liabilities.
The Statement of Cash Flows can be use to evaluating the prior producing
and selling activities to make a better estimation about the future
producing and selling activities.
1. Factory Price
Price charged to the products before shipped out from the factory. This
price is including all the operating cost. In this price determination, the
beginning work in process is added with the price of direct materials
used, manufacturing overhead, indirect materials and deducted by the
ending of work in process.
2. Selling Price
Price charged to the products after adding the cost of goods sold and
contribution margin.
3. Zone Price
Price which determined by the area in which the company is doing the
business. For example, the price of one bottle of mineral water in the
traditional market is different from the price of one bottle of mineral
water in the restaurant.

2.1.3 Promotion
The communication element includes personal and non-personal
communication activities (Larry Steven Londre, 2009).
1. Advertising
Mass or nonpersonal selling: TV, radio, magazines, newspaper,
outdoor/outof-home Advertising is structured and composed non
personal communication of information, usually paid for and usually
persuasive in nature, about products (goods, services, and ideas) by
identified sponsors through various media. (Arens, Weingold, Arens,
11th edition of Contemporary Advertising, 2008) Advertising is any
paid form of nonpersonal presentation and promotion of ideas, goods,
or services by an identified sponsor. (Kotler & Armstrong, 2009).
The example of advertising are:
- Billboards
- Banner
- Brochure

2. Personal Selling
Personal selling uses when the company is using a sales person to
convince the customer to buy the products. The strategy that usually
company used in their personal selling are:
- Coupon
- Lottery
- Sample
2.1.4 Place
The companys activities that make the product available, using
distribution and trade channels, coverage, assortments, locations,
inventory and transportation characteristics and alternatives (Larry Steven
Londre, 2009). Place determine the visibility of the business. If the place is
not strategic enough to seen by the people then the products will not be
able to be sold and the business will not running well.