March-June 2020 SBL ExamsWatch free ACCA SBL lectures129
Only onOpenTuitionyou can find: Free ACCA notes•Free ACCA lectures•Free ACCA tests•Free ACCA tutor support•The largest ACCA community4.Product positioning‘Positioning’ means making a product or service address specific segments of the market.Originally there were four variables or levers that could be used. These were known as McCarthy’smarketing mix, or the Four Ps. Now seven Ps are often shown:๏Product๏Price๏Promotion๏Place๏People๏Process๏Physical evidenceThe first four (product, price, promotion, and place) were the original components of the marketingmix and apply to the marketing of physical products.The three last ones (people, process, and physical evidence) areadditionalvariables specifically todo with positioning services. When services are provided it is important to have the right peoplewith the right attitude, whereas in manufacturing, customers might never meet employee. Theprocess by which it is provided, and the physical evidence that something has actually happenedare also important. For example, if you are booking an airline flight, you may ring up the airline andyou expect to be dealt with in a helpful and friendly way by the representative. The process has tobe convenient to you, you don’t want to be waiting too long before your phone call is answered.Finally you expect some sort of physical evidence, such as an e-mail, to show you that the service isactually going to be provided.4.1. ProductThe first of the Four Ps is product, and this includes:Thefeaturesof the product (what it does)๏Quality,๏Design,๏Brand,๏Packaging.For example, take calculators. Some have got simple arithmetic functions whereas others havetrigonometric, scientific or statistical functions; some have rolls of paper on which calculations canbe displayed. These are all different features of the product. Some calculators will be relativelycheap and perhaps very durable whereas others will be of high quality for everyday office use.Design might not be very important in calculators, but some are marketed on the basis of having asleek futuristic looking design whereas others are more commonplace. Brand and packaging areprobably not particularly important for calculators, but are very important when consideringsomething like cosmetics or perfume where the packaging might possibly be more expensive thanthe contents.March-June 2020 SBL ExamsWatch free ACCA SBL lectures130
Only onOpenTuitionyou can find: Free ACCA notes•Free ACCA lectures•Free ACCA tests•Free ACCA tutor support•The largest ACCA community4.2. PricingThe second of the Four Ps is price. This includes not only the price itself (the price level or pricepoint), but also discounts for bulk buying which are particularly important in business-to-businesssales. Price also includes the terms, that is how long a customer has to pay. There are also varioustypes of strategic pricing, described below.
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