The term marketing mix is a popular phenomenon in the principle of marketing management and it refers to the combination of the four inputs or factors that constitute the major components or pillars upon which marketing system rests. The term is popularly known as the 4ps’. McCarthy in 1976 was the first professional marketer acclaimed to have referred to product, price, promotion and place as 4P’s of marketing. Marketing Mix refers to all marketing decisions and activities which stimulate, enhance and promote sales. It is a combination of policies, procedures processes, programmes, strategies, techniques and methods adopted from period to period by an organisation in its marketing programmes and activities which will help to best achieve and actualize the mission, vision, goals and objectives within a certain period of time.
The Four P’s of Marketing
McCarthy as earlier reported popularized a four-factor consideration which are
Product
This connotes a broad concept that encompasses the satisfaction of all consumer needs in relation to a good, service or idea. It includes making decisions about customer service, package design, brand names, trademarks, warranties, product development, quality, feature and packaging. It includes an element of marketing decision which are made with a view to making and developing the right good or service for the company’s customers. Strategies used to make the company’s customers. Strategies used to make a company’s product attractive and inviting to customers to promote and enhance patronage.
Price
Price is the amount/ anything that is used to facilitate exchange and of all the four p’s, price is the most sensitive one because customers respond more to price strategy than other three p’s. The following among others are the pricing strategies: least price, discount, payment period, credit terms etc. one of the factors that influence a marketer’s pricing strategy is competition. Naturally, consumer’s perception about the quality or inferiority of a product is on the monetary value or worth placed on it.
Pricing Policies and Strategies
a) Discount: This involves the offer of reduction from a base price.
b) Cash discount: it connotes discount reduction/ deduction accruing to buyers for making payments within a specific period.
c) Quantity discount: it means discount reduction made to encourage customers to buy in large quantity or bulk or wholesales.
d) Trade discount: it refers to deduction given to the customers in payment for the marketing functions he/she is expected to discharge
Whichever a strategy a marketer employs, pricing decisions should be tailored to meet the following conditions:
i. support a product marketing strategy;
ii. achieve part of the financial objectives of a firm;
iii. conform with the realm of the market environment.
Place
This is otherwise referred to as a distribution, time/possession utilities and there are conditions that enable consumers and business users to have products available for use when and where they want them. It also connotes the network or distribution strategy which an organisation provides to make its product accessible to the prospective customers. Place or a distribution decision involves modes of transportation, warehousing, inventory control, order processing and selection of marketing channels.
Factors influencing decisions on marketing channels
i. Number of customers
ii. Geographical location
iii. Purchasing pattern of buyers
iv. Nature if the products
v. Availability of resources (men, material, method, money, machine)etc.
Promotion
This relates to all marketing efforts made to convince potential customers that the ‘right’ product is available at the ‘right’ place and at the ‘right’ price through publicity, advertisement, sales promotion and other promotion techniques. The main goal of every promotional strategy is to inform, persuade, educate, enlighten, orientate or remind the target audience about the availability of a product.
Promotion strategies could be employed to achieve the following communicating factors:
a) communication as persuasion.
b) communication as a transmission of information.
c) communication as personal expression, social interaction and relationship; and
d) communication as a vital instrument of social and political change (Bordeanavo1977)
Types of Promotion Strategies
I. Publicity: This has been described as a technique or method of informing the public or consumer of a company’s product or service with a view to generating interest and creating favourable public opinion through extensive commendatory notices in press and on air.
ii. Sales Promotion: The Objectives and target of sales promotion are to enhance and entice potential customers to purchase immediately. As put by Schewe (1987) “sales promotion is typically used as the point of purchase to motivate the consumer to complete an exchange. It complements personal and mass selling efforts”
According to American Marketing Association (AMA, ” Sales promotion refers to those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as displays, shows and exposition, demonstrations and various non-recurrent selling efforts not in ordinary routine”.
Test: Marketing SSS3 First Term Mid-Term Assessment
1. _________ specifies the organisation’s overall goals and operational scope and provides general guidelines for future management action?
Formulation of a marketing strategy
Defining the organisation’s mission
Identification of a good marketing location
Planing on strategy
2. Planning can either be strategic or tactical?
True
False
3. _________ is an overall program for selecting a particular target market and then satisfying consumers through a careful balance of the elements of the marketing mix-product, price, distribution and promotion
Formulation of a marketing strategy
Defining the organisation’s mission
Identification of a good marketing location
Planing on strategy
4. Attending seminars and workshops where issues on raising money for business ventures are being discussed is one of the ways to source for funds to establish personal marketing outlet?
True
False
5. _________ involves that the outlet is in midst of the customers or buyers, i.e. the cite of the outlet must be within reach of the buyers?
Formulation of a marketing strategy
Defining the organisation’s mission
Identification of a good marketing location
Planing on strategy
6. To set up and operating a marketing outlet is to understand customers, i.e understanding customer is what business owners must know?
True
False
7. Asking after regular customers are not necessary for operating a marketing outlet?
True
False
8. Whoever that wants to set up and operate a marketing outlet must be able to keep customer database?
True
False
9. Obeying the rule of telephoning by not shouting at customers must be part of the business ethics for one to set up and operate a marketing outlet?
True
False
10. It is important to know that setting up and operating marketing outlets involve that the business owner should always be patient and courteous and polite with customers because they are the reason for opening marketing outlets?
True
False
11. The process of adjustment rests at the point where purchase equals to supply?
True
False
12. Purchase and Supply unit or department in a company can also addressed as?
department unit
procurement unit
adjustment unit
policy unit
13. An increase in supply will lead to a decrease in the market price and an increase in the purchase?
Yes
No
14. In determining a potential source of purchasing and supply, It is expedient for personnel in charge to take cognizance of the following factors such as technical ability, competency, years of experience, product capacity, financial capability, industrial relations stability, production and quality control?
True
False
15. An increase in the purchase will bring about an increase in price and a rise in supply?
True
False
16. Most established organisations bargained with suppliers through competitive bidding?
True
False
17. ________ is the settlement of differences/disputes in which each of the party gives up or concedes something it has earlier requested?
compliance strategy
compromised concession strategy
understanding strategy
bargaining strategy
18. It is important to note that bargaining and negotiation skills are not a collection of bribe, not to reduce the number of goods so that the procurement officer could collect the left over, this is immoral, unethical and unprofessional practices?
True
False
19. Bargaining strategy could take the form of what is known as a ” door-knob strategy “?
True
False
20. Negotiation and bargaining skills are the art of arriving at a common understanding through the use of deliberations, persuasion and communication on the essentials of purchase such as price, delivery, quality, specifications among other terms?
True
False
21. ________ indicates budget not expressed in monetary terms?
transaction motive
fund management
speculative motive
none financial budget
22. _________ is the money held by the business establishment which is meant for investment so as to make profits?
transaction motive
fund management
speculative motive
financial budget
23. A budget is a detailed plan showing how resources will be acquired and used over some specific period of time?
True
False
24. ________ can be defined as “the part of overall management devoted to the effective and efficient investment, financing, application and control of an organisation’s resources(finance)?
transaction motive
fund management
speculative motive
financial budget
25. ________ connotes a broad concept that encompasses the satisfaction of all consumer needs in relation to a good, service or idea?
discount
product
trade discount
price
26. Whichever a strategy a marketer employs, pricing decisions should be tailored to meet the conditions to support a product marketing strategy?
True
False
27. _________ is anything that is used to facilitate exchange and of all the four p’s?
Marketing mix
product
price
place
28. ___________ involves the offer of reduction from a base price?
discount
product
trade discount
price
29. _____________ means reduction made to encourage customers to buy in large quantity or bulk or wholesales?
discount
product
trade discount
quantity discount
Read our disclaimer.
AD: Take Free online baptism course: Preachi.com 