4 P's of marketing
Promotion
Product
Place
Price
Any physical/non-physical item (goods/services) purchased by customers
Product portfolio: collection of every product + service the business sells
Diversifies risks
Types of Products
Goods
Products of tangible nature
Services
intangible nature
Customers do not simply buy products for the product, but sometimes they buy into the ideas and status that the product gives them.
Added Value
Cost - the amount a product costs
Price - the amount the customer pays for the product
Value - the values customers get from the product
If the focus is on cost leadership, focus on costs; keeping them as low as possible
must be slightly lower than competitor's price, so customers will be drawn
Focus on differentiation; cost is not too important, as the product is different/unique, so can charge more
Pricing Strategies
Cost Plus Pricing
Competitive Pricing
Penetration Pricing
Promotional Pricing
Used to persuade the customer to buy the product
Attract customers;
Persuade customers;
Raise awareness of product;
Create and develop brand image;
Differentiate from competitors.
Above-the-line (paid-for on mass media) - TV, magazines, social media.
Below-the-line (using incentives to encourage consumers to buy) - sales promotion, sponsorship, personal selling.
Needs to be somewhere customers can find (visible)
Accessible to customers
Brand image (to attract)
Mcdonalds - TV commercials
McDonalds - listens to customers, changes accordingly
Apple - iCloud, Apple pay, apple care
Secondary services - expansion of product mix