Marketing Mix: the 4 PS

Group 4: BINAS, CELINE

BELLEZA, NAPOLEON
BERROYA, ADRIAN
DE LA CUADRA, WILSON
VALIENTE, LOWELL
 -Marketing Mix

Marketing mix refers to those four elements

(product, price, promotion, and place) of a
firms marketing strategy which are designed
to meet the needs of customers.
 -Marketing Mix

Figure 10-1 Elements of marketing mix:

Marketing Mix

Product Price Place/ Promotion

-Retailers
-Appearance -Cost based -Advertising
-Wholesalers
-Function -Competition based -Sales promotion
-Distribution
-production costs -Consumer based -Personal selling
-Transportation

Capable or solution Cost Convenience Communication

 -Marketing Mix: Product

Product:
Products must be ensured to meet the
needs of customers in terms of the
following aspects:
1. Appearance
2. Function
3. Cost
 Marketing (2)
-Marketing Mix: Product
Table 10-1 Features of a product to meet the needs of customers

Aspects Brief explanations or examples

The appearance Color, size, shape, etc. must meet the
consumer needs.
The function Able to be used
Convenient for use
Meeting special needs of customers
The cost Production costs must be low enough to earn
some profit.
High cost, higher price.
Too high price, customers unlikely to buy.
 -Marketing Mix: Price

Price:
The pricing policy that a business chooses
is often a reflection of the market at
which it is aiming.
The right price set must take into account
of production costs, competitors prices
and consumers purchase ability and
demand level.
 -Marketing Mix: Price

Table 10-2 Influences from the pricing factors

Factors Influences on the price of a product
High production costs High production costs would mean the high sale price
for the goods supplied by sellers.

High customer High customer demand will lead to the increased price
demand of the goods or services. Suppliers are more wiling
to provide the goods or services as it is more
profitable for them to supply.

Low prices charged by If the price of the substitute product offered by

competitors competitors decreases, the demand for a product
will be decreased as well.
 Marketing (2)
-Marketing Mix: Price

Attention: High-price strategy

In general, from the economic point of

view, the higher the price of a product
is, the less quantity demanded by
consumers. Or there are few buyers
who would like to high-price products.
However, in practice, a business may
charge a high price because it is aiming
to sell to those customers who regard its
products as unique and high quality
although the production costs are not
high.
 - Marketing Mix: Place

Definition:
Place refers to the means by which
products can be distributed to the
consumers. The product must get to the
right place at the right time.
Decision making may be based on the
following:
1. How the product is distributed physically,
such as air, sea, rail, or road.
2. How the product is sold, such as through
retailers, wholesalers, or direct mailing, etc.
 Marketing (2)
- Marketing Mix: Promotion
Definition:
Promotion refers to a number of
promotional methods, such as advertising,
sales promotion, competitions, and
personal selling, etc.
A business must choose a method of
promotion which is the most effective in
its particular market and for its own
product. For example, TV advertising may
be better for the product with a high sales
turnover or a wide appeal. But for high-
technology machines or equipment, it is
better to choose personal selling methods.
 -Marketing Mix
Factors for making choices of marketing mix:

1. The type of product sold, e.g. for high tech.-

equipment, the business needs to emphasize the
product and its quality rather than promotion.
2. The market sold to, e.g. for consumer markets,
promotion may be emphasized.
3. The degree of competition, e.g. if the
competition is high, price is needed to be
emphasized in order to gain some advantages
in the market.
4. The position of the business in the industry, e.g. if
the business is large or the market leader, it has
more freedom to choose the market mix.
5. The stage of product life cycle in which a
product is, e.g. if the product is in the stage of
introduction, of course, promotion must be
emphasized...