E. Jerome McCarthy was an American marketing professor who was the first person to introduce the marketing mix (also known as the 4 Ps) (E. Jerome McCarthy, 2014). The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. (The Economic Times, 2014). The 4 Ps refers to: product, price, place and promotion. Each element of the marketing mix is influenced by one another and it takes a lot of market research and understanding from many parties such as from producers to buyers.
The first P of the marketing mix is product. Product is the good or service that is to be manufactured and sold to the final consumer. It is important to identify what are the customers’ needs and wants and whether the product which is being sold will satisfy it. The key features of the product such as the colour, brand, name, looks and cost will have to be met in order to have the product. A product must also have certain features that will differentiate it from its competitors (Investopedia, 2010).
Subsequently, price is the next P of the marketing mix. In order to appraise the product or service, it is important to know what the value of the product or service to the buyer is. The price of a product depends on several factors such as the cost, market demand, elasticity of demand for the product and other direct and indirect factors. Producers have to know if consumers are price-sensitive and whether a small decrease in the price of product will help the business to gain extra market shares (Investopedia, 2010). There are different strategies when it comes to pricing. However, pricing can also be used as means of differentiation in order to stand out from their competitors (The Economic Times, 2014).
Moving on, the next P of the marketing mix is place. “In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or ‘place’ strategy.”(The Economic...
Please join StudyMode to read the full document