Marketing Mix (4ps)

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