Successes of Major corporations
BUSA 300 – Principles of Marketing
University of Hawaii-West Oahu
This paper describes the importance of the 4 Ps (product, price, promotion, place) in marketing and how they are each used in a large corporation perspective. This paper offers insight into what tactics are utilized to generate revenue and obtain a loyal consumer base.
The Importance of the 4 Ps in Marketing and the Successes of Major corporations When someone thinks about marketing, the first thing that might come to mind is television ads, billboards, and radio ads. When you consider all the aspects that come into play to produce these ads, it is clear that marketing is more that just a simple billboard. To understand how marketing works and what is involved in developing ads, you have to go back to basics and break it down step by step. Marketing concepts may be evolving as new technologies emerge, but the same four basic considerations of product, price, promotion, and place will always be found. What is marketing? Marketing is the process by which the management of a company identifies, anticipates and satisfies the wants of a customer. This process requires that companies develop a product or service that they think customers in their chosen demographic will want to purchase at a price that they can afford. The term marketing mix, which consists of the 4 Ps: product, price, promotion, and place was coined by Neil Borden in 1953, building on James Culliton’s (1948) idea that for a successful marketing decision, a type of marketing recipe has to be employed. (Marketing mix, 2012) Product is the first component of the marketing mix. The product is the article that a manufacturer desires to sell in the open market. "It is a tangible good or an intangible service. Intangible products are service based like the tourism industry, the hotel industry and the financial industry. Tangible products are those that have an independent physical existence." (Marketing mix, 2012) The importance her lies with ensuring the product or service meets the consumer needs. "Product is the most powerful competing instrument in the hands of the marketing manager. It is the heart of whole marketing mix. If the product is not sound /attractive to the customers, no amount of sales promotion, appropriate channel selection or price reduction will help to achieve the marketing target." (Gaurav, 2010) Next is Price. Price is how much will be charged for the product or services. Price includes many variables such as pricing policies, discounts offered to get the attention of the buyers, and delivery operations. It is important that the price is set appropriately for the quality of product and its target audience. "Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often; it will affect the demand and sales as well." (Marketing Mix, 2012) Price also determines the profit that the company will turn. The company must be careful when setting prices that they stay competitive with other companies but still remain attractive to the consumer. Promotion refers to the way the company chooses to make consumers aware of their products and entices them to buy them. Promotion takes many forms and companies have come up with very clever tools for marketing their products. "Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion." (Marketing Mix, 2012) Not only does the company have to ask where to market my products but also the best time to promote. Time of year, time of day, and time of the month all play a big roll in reaching your target audience. Word of mouth used to be the number one form of promotion, but now it is advertising through media. "Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. In 2010, spending on...