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Marketing Mix (pt. 2) - 4Ps (Promotion (Forms of Advertising Media (Radio,…
Marketing Mix (pt. 2) - 4Ps
Product
Definition
Growth
Sales are rapidly increasing
Introduction
A product is first available to the public
Maturity
Sales are at the highest level
Decline
Sales are falling
Price
Definitions
Penetration Pricing
A price is set lower than competitors
Skiming
A high price is charged initially for those customers who want the latest products
Cost-Plus Pricing
Adding a percentage of the profit onto costs of making the product
Promotional Pricing
Prices are reduced to increase sales
Competitor Pricing
A price is set based on prices charged by competitors
Factors affecting the price
The costs to produce the product or service
The business, if new, customers may be reluctant to pay high prices
The price charged by other businesses
The income of a target market
Place
Examples
Selling Directly to Consumers
Producer ==> Retailer ==> Consumer
Selling through Retailers
Producer ==> Wholesaler ==> Retailer ==> Consumer
Selling through Wholesalers
Producer ==> COnsumer
Promotion
Definitions
Advertising Campaign
A series of advertisements often using different advertising media
Advertising Media
The methods by which a business can advertise a product
Point of Sale Promotion
Price reductions, loss leaders, competitors, free samples
Forms of Advertising Media
Radio
Websites
Printed Media
Television
Social Meida
Aims of Promotion
To keep a business ahead of its competitors
To create or change the image of a business, its products and services
To inform customers about a product or service
To maintain or increase sales