Principles of Business
What is marketing?
Marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market.
What is the most important marketing mix?
Most people consider the marketing mix to be made up of the "Four P's of marketing."
True or False: The Marketing Mix is also called the Four P's.
Why is it important for a business to have a marketing mix?
Product refers to an item, good or service that is capable of satisfying the needs or wants of customers. It is one of the crucial elements of the marketing mix and is offered for sale in the market. Product is simply a means or medium of providing service to the customers.
Examples: A retail store sells goods (clothes, groceries, etc.) and a cleaning business sells services (housing cleaning). Both would be considered the "product" of that business.
Price refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply-demand and a host of other direct and indirect factors. Prices will not always be set at the level which will maximize sales or short run profits.
Marketing mix considerations for product:
What does the customer want from the product/service? What needs does it satisfy?
What features does it have to meet these needs?
How is it branded?
How is it different than your competitors?
How and where will the customer use it?
What does it look like? How will customers experience it?
What size(s), colour(s), and so on, should it be?
If we decided to start a new business selling custom-made t-shirts, how could you describe the product component of our business? What exactly would we be selling? What does it look like, feel like, etc? What special features does it have? What is our product called? Use your imagination!
Marketing mix considerations for price:
What is the value of the product or service to the buyer?
Are there established price points for products or services in this area?
Is the customer price sensitive?
What discounts should be offered to trade customers, or to other specific segments of your market?
How will your price compare with your competitors?
If we decided to start a new business selling custom-made t-shirts, how could you describe the price component of our business? How much does our product cost? Do we charge more, less, or the same amount as our competitors?
Students will work in groups to construct a chart describing the "Four P's".