These are the basic elements of the MARKETING PLAN for any business. PRODUCTThe business
has to produce a product that people want to buy. They have to decide which market segment they
are aiming at age, income, geographical location etc. They then have to differentiate their product
so that it is slightly different from what is on offer at present so that people can be persuaded to give
them a try. PROMOTIONCustomers have to be made aware of the product. The two main
considerations are target market and cost. A new business will not be able to afford to advertise on
national television, for instance and would not wish to because its market will be local to start with.
Leaflets, billboards, advertisements in local newspapers, Yellow Pages and word of mouth would be
more appropriate. PRICEThe price must be high enough to cover costs and make a profit but low
enough to attract customers. There are a number of possible pricing strategies. The most commonly
used are PENETRATION PRICING charging a low price, possibly not quite covering costs, to gain
a position in the market. This is quite popular with new businesses trying to get a toehold.
CREAMING the opposite to penetration pricing, this involves charging a deliberately high price to
persuade people that the product is of high quality. Luxury car makers often use this strategy COST
PLUS PRICING this is the most common form of pricing. Costs are totalled and a margin is added
on for profit to make the total price. PLACEThe business must have a location that it can afford, and
that is convenient and suitable for customers and any supplier.
http//www.marketing91.com/marketing-mix-4-ps-marketing/ The Marketing mix is a set of four
decisions which need to be taken before launching any new product. These variables are also
known as the 4 Ps of marketing. These four variables help the firm in making strategic decisions
necessary for the smooth running of any product / organization.These variables are Product Price
Place Promotions Marketing mix is mainly of two types. 1) Product marketing mix Comprised of
Product, price, place and promotions. This marketing mix is mainly used in case of Tangible goods.
2) HYPERLINK http//www.marketing91.com/service-marketing-mix/ o Service marketing mix
Service marketing mix The service marketing mix has three further variables included which are
people, physical evidence and process. They are discussed in detail in the article on HYPERLINK
http//www.marketing91.com/service-marketing-mix/ o Service Marketing Mix service marketing mix.
The term marketing mix was first coined by Neil H Borden back in 1964 in his article The concept of
marketing mix. Several strategic analysts over the years believe that the marketing mix can make or
break the firm. Having the right marketing mix at the start of the marketing plan is absolutely
essential. Over time the concept of marketing mix has provided a steady platform for the launch of a
new product or business. As mentioned before, the marketing mix is characterized by four different
but equally important variables. These variables are never constant and may be changed over time.
However, a change in one of the variables maycause a change in all the other variables as well. The
variables are as follows 1) Product The first thing you need, if you want to start a business, is a
product. Therefore Product is also the first variable in the marketing mix. Product decisions are the
first decisions you need to take before making any marketing plan.A product can be divided into
three parts. The core product, the augmented product and the tertiary product. Before deciding on
the product component there are some questions which you need to ask yourself. What product are
you selling What would be the quality of your product Which features are different from the market
What is the USP of the product Whether the product will be branded as sub brand or completely
new What are the secondary products which can be sold along with primary (Warranty, services)
Based on these questions, several product decisions have to be made. These product decisions will
in turn affect the other variables of the marketing mix. For example You launch a car with is to have
the highest quality. Thus the pricing, promotions and placing would have to be altered accordingly.
Thus as long as you dont know your product, you cannot decide any other variable of the marketing
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