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