Marketing Mix: 4Ps of Marketing

Content

1. Explanation of marketing mix(4ps)
2. Identification of the 4ps of marketing.
3. Product
4. Price
5. Place
6. Promotion

Marketing Mix

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, consumers 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”.
Sales promotion material and activities.

AIMED AT FINAL CONSUMER AND USERS AIMED AT MIDDLEMEN AIMED AT COMPANY OWN SALESFORCE

Banners Price deal Contests
Samples Promotion allowance Bonuses
Contests Sales contests Meetings
Calendars Calendars Portfolios
Point of purchase Gifts Displays
Materials Sales aids
Aisles displays Training materials

McCarthy and Brogowicz Sales Promotion Model

iii. Advertisement: This is a paid-for, non-personal communication through various media about a business, firm, product, ideas or services by an identified sponsor. Its intention is to persuade or influence members of a particular audience. Advertising primarily involves the use of mass media as newspapers, television, radio, magazines etc..

iv. Public relations: This relates to how a company relates to its various public or customers. These publics include customers’, suppliers, community where the business is located etc.. organs of public relations/communication components are newsletter, house organs, bulletins, special journals, notice boards, company/official websites and wares etc. Community Social Relationship (CSR) is a key component in community relations.