Marketing is a process in which businesses or individuals create and offer products and services that provide value to people.
The word 'marketing', while being ever popular, has seen its popularity soar in the last few years.
This is because businesses are increasingly adopting an approach which no longer focuses just on selling.
Now, businesses want to create relationships with customers as these relationships, if properly managed, can become quite beneficial for businesses in the long run.
Thus, to better help understand the term 'marketing', it is important to consider the 4P's that form the marketing mix.
These have been stated below: 1.
Product: The first P, product is composed of the physical features in case of a product and intangible features in case of a service.
These features cover everything from the physical appearance of a product to its quality.
However, a 'product' is not as simple as many may deem it to be.
More often than not, designing and creating a product requires deep level planning.
Moreover, a lot of research and development have also gone into the overall process of making a product.
2.
Place: The second P, the place is where a business offering actually goes on sale, that is the location.
In addition, the term covers where a business' target audience is located in and also the channel of distribution that will be used to get the product or service across to customers.
With the internet, placement decisions have also been in regards to the domain name that a business might choose for its own website.
For example, online retailers that do not have a physical presence will want to choose a name that is striking and accurate at describing the type of business.
3.
Promotion: The third P, promotion is concerned with letting customers know about a product or service.
Promotion is composed of a variety of elements such as personal selling, advertising, sales promotion, direct messages, and publicity.
Each of these elements is quite useful, and chosen by businesses according to their requirements.
For example, a business looking to sell a product to the masses might choose advertising through television, as this is one channel that allows a lot of people to get to know about the product or service.
4.
Price: The fourth and final P, price decisions is concerned with how much customers will have to pay for a product.
These decisions are not as simple as they first seem, as there is a lot of thinking that goes behind price decisions.
Businesses often play psychological games with customers and price products at such price points that generate the greatest amount in revenues and help builds the brand.
For example, a luxury car might be priced higher than an average car simply due to the image it has in the minds of people.
Similarly, a soap meant to be used by the masses might be priced cheaply so that a lot of people use it.
Pricing decisions often affect consumers' perception of a product or service as well.
Thus, price plays a crucial in breaking or forming a perception about a product.
The word 'marketing', while being ever popular, has seen its popularity soar in the last few years.
This is because businesses are increasingly adopting an approach which no longer focuses just on selling.
Now, businesses want to create relationships with customers as these relationships, if properly managed, can become quite beneficial for businesses in the long run.
Thus, to better help understand the term 'marketing', it is important to consider the 4P's that form the marketing mix.
These have been stated below: 1.
Product: The first P, product is composed of the physical features in case of a product and intangible features in case of a service.
These features cover everything from the physical appearance of a product to its quality.
However, a 'product' is not as simple as many may deem it to be.
More often than not, designing and creating a product requires deep level planning.
Moreover, a lot of research and development have also gone into the overall process of making a product.
2.
Place: The second P, the place is where a business offering actually goes on sale, that is the location.
In addition, the term covers where a business' target audience is located in and also the channel of distribution that will be used to get the product or service across to customers.
With the internet, placement decisions have also been in regards to the domain name that a business might choose for its own website.
For example, online retailers that do not have a physical presence will want to choose a name that is striking and accurate at describing the type of business.
3.
Promotion: The third P, promotion is concerned with letting customers know about a product or service.
Promotion is composed of a variety of elements such as personal selling, advertising, sales promotion, direct messages, and publicity.
Each of these elements is quite useful, and chosen by businesses according to their requirements.
For example, a business looking to sell a product to the masses might choose advertising through television, as this is one channel that allows a lot of people to get to know about the product or service.
4.
Price: The fourth and final P, price decisions is concerned with how much customers will have to pay for a product.
These decisions are not as simple as they first seem, as there is a lot of thinking that goes behind price decisions.
Businesses often play psychological games with customers and price products at such price points that generate the greatest amount in revenues and help builds the brand.
For example, a luxury car might be priced higher than an average car simply due to the image it has in the minds of people.
Similarly, a soap meant to be used by the masses might be priced cheaply so that a lot of people use it.
Pricing decisions often affect consumers' perception of a product or service as well.
Thus, price plays a crucial in breaking or forming a perception about a product.
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