Marketing Knowing more about the four Ps.
By Maureen Guevara
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Index
What is marketing? …………………………………………. 3
The four Ps……………………………................................... 4
Products and Brands…………………………………..…… 5
Price………………………………………………...………….. 8
Place………………………………………………………….... 9
Promotion...........................................................................10
Activity…………………………………………………………11
Reference……………………………………………………..12
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What is marketing? Marketing is the process of planning, designing, pricing, promoting and distributing ideas, goods and services in order to satisfy customer needs. Companies point out how the special characteristics or features of their products and services possess particular benefits that satisfy the needs of the people who buy them. Marketing also refers to the process through which goods and services move from concept to the customer. It includes the coordination of four elements called the 4 P's of marketing: (1) identification, selection and development of a product, (2) determination of its price, (3) selection of a distribution channel to reach the customer's place, and (4) development and implementation of a promotional strategy.
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The four Ps
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Products and Brands In general, a product is defined as a "thing produced by labor or effort" or the "result of an act or a process.� Goods: An economic good is a physical object or service that has value to people and can be sold for a non-negative price in the marketplace. It also refers to the materials and components used to make products, or the products that are made. Some examples of these goods are:
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Products
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Brands A brand is a name that a company gives to its products so they can be easily recognized.
When talking about brands, it is common to talk about: Branding: It is to create brands and keep them in the consumer’s minds through advertisement, packaging, catchy names. Brand awareness: This refers to how much people recognize the brand. Brand image: This is related to the ideas people have about a particular brand. Brand identity:
It is how people relate this particular brand with
others. Brand generic: Those products that do not have a particular name.
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Price The price is the market value, or agreed exchange value, that will purchase a definite quantity, weight, or other measure of a good or service.
In other words, it is the consideration given in exchange for
transfer of ownership, price forms the essential basis of commercial transactions. There are many words related to prices: Price boom: This refers when the prices are rising quickly. Price controls: These are the controls the government applies to limit prices. Price cut: This is the reduction of prices. Price hike: This is an increase in prices. Price war: When companies compete by reducing prices. Price leader: The first company that reduces prices. Price tag: This is a label attached to the products that indicate the prices.
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Place A shop or store is where people buy things. Companies may call it a retail outlet or sales oulet. Examples of shop types:
Chain store
Department sotre
Drugstores
Supermarkets
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Promotion It is all the activities supporting the sale of a product. Some activities that stimulate the increase in sales are: Discounts Demonstrations Contests Special
offers Free samples Exhibitions Points of sale and displays in different places.
Advertisements
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Activity Case Study Many companies worldwide are trying to reach new customers through marketing. This is the case of "Angel Company". They are using newspapers and magazines trying to reach teenagers. However, they have not increased their sales and the competition "Angelica Company" is getting more customers because they use a Facebook page. Angel company is worried, and they do not know how to compete with Angelica. After reading the case, imagine you are the marketing manager of Angel’s company. What will you do to increase sales? Prepare a proposal taking into account the Four Ps.
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Reference Mascull, B. (2009). Business Vocabulary in Use. Intermediate. Cambridge University Press: Dubai.
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