can develop a strategy, you need to make several decisions about the four factors that you and your company can control: product, price, place, and promotion. Notice how all the words begin with the letter P. They are known as the four Ps of marketing. A good marketing strategy combines all of the four Ps. When all four parts are assembled, it is called the marketing mix. The Marketing Mix The Four Ps of Marketing Promotion • Advertising • Publicity • Sales Promotion Price • Competitiveness • Perception • Value Product • Quality • Design • Features Place • Storage • Transportation • Distribution Product What product are you selling? What does it look like, taste like, feel like, smell like, or sound like? If it’s a cereal, is it a whole- grain health fest or a colourful, sweetened breakfast party complete with a present in the box? If it’s a cellphone, does it simply make and receive calls, or does it include a camera, MP3 player, and organizer? When developing a product for market, you should consider the things you can control: the quality, design, and features of the product.
Introduction to Business BBI2O-B Lesson 11, page 13 Copyright © 2008 The Ontario Educational Communications Authority. All rights reserved. Quality There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper, and the people who consider price only are this man’s lawful prey. —John Ruskin (1819–1900) The higher the quality of your product, the higher the price you will have to charge for it. Many consumers look for quality, but others look for price. Most consumers know that you pay for quality. You need to consider your consumer market before you decide how much “quality” you want your product to have. Design Every product has a design component. Customers often buy products because they like the way they look. Clothing is an ideal example. The fashion industry is built upon design and the consumer taste for it. Automobiles have a strong design component. Furniture can be a fashion statement, and even appliances can have style. The look of things is important. Features Features are what the product, service, or idea actually has in it, or what it does. For example, automobiles have numerous features, from cupholders to seat warmers. Raisin bran is a bran cereal with raisins in it. Those are its features. A jacket has an inside pocket that zips up for a cellphone. Nice feature. A pair of athletic shoes has a special shock-resistant sole. Runners appreciate that feature. Airlines offer meals and in-flight movies. (Sometimes you would prefer they didn’t.) Fitness centres include pools, treadmills, squash courts, and juice bars. Healthy features. Politicians promise tax cuts and childcare programs, and improved health care as features of their campaigns.
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