4P's of Marketing
- 3. Product Refers to the goods and services you offer to your customer. Product Attributes: Quality Some people really want quality vs. others that dont really matter. Features How will your product/service differ from the competition? Design How is it going to look? Consumers often will purchase because it looks cool Warranty What is the Warranty of your Product?
- 5. Price Price refers to how much you charge for your product or service. Must consider the costs of all the inputs (materials, labour, etc) Mark-up Price How much profit do you want to make on every product/customer Different Pricing Strategies Competitive basing your prices on those of the competition Penetration pricing low just to get some business for new entrants. Bundle putting the product with another item and bundling the prices. Skimming product at high price for affluent customers. Psychological based on price that looks better. For eg: Rs 199.99 looks better than Rs 200.
- 7. Place Simply refers to how & where you are going to sell the product to the consumer Direct Distribution selling your product directly to the consumer Brick & Mortar vs. Virtual Store Indirect Distribution sold through a 3rd party What retailers are the best for reaching your Target Market? Market Coverage: Intensive Distribution Selective Distribution Exclusive Distribution
- 8. Promotion Promotion refers to the advertising and selling part of marketing. It is how you let people know what you have got for sale. A successful product or service means nothing unless the benefit of that product/service can be communicated to the Target Market Celebrities endorsements. The big factor that has pushed up cdm sales is the Amitabh Bachchan campaign. Cadbury appointed Amitabh Bachchan as its brand ambassador.