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4Ps - Coggle Diagram
4Ps
Tactical decision on
PRICE: how much the product costs
Factors to consider
Internal
Costs of production
A surplus for profit is added to them
Positioning and image
unbranded items mustn't be too expensive
Branded products are sold at a higher price
Low price is a sign of poor quality
External
Supply and demand
the higher the demand the higher the price
State of economy
In periods of recession consumers aren't willing to spend much
Competitors
The price mustn't be too high in comparison with competitors
types of tactics
penetration tactic
raising the price after creating loyalty
Economy price
prices kept low saving on the other 4Ps factors
Premium tactic
making prices high to improve the image
PLACE: how and where the product is distributed
types
wholesailers
retailers
online purchase
particular types of stores
flagship stores
temporary stores
concept stores
traditional stores
factors to consider
target market
young, old, sophisticated, wealthy, brand-conscious
product
perishable goods (e.g. fresh milk, fruit, flowers). Directly from producer to retailer
consumer goods (e.g. clothes, snacks). Through several intermediaries (wholesailers, retailers, e-commerce) to reach a broad audience.
Industrial goods (e.g.machineries). Directly to factories
budget
positioning
PROMOTION: how the customer's attention is caught
B2B : the customer is another company
agents/sales representatives
special events
Trade fairs
specialized magazines
B2C: The customer is the end user
personal selling
personal selling by sales agents
advertising
sales promotion
loyalty card
free gifts
special offers
PRODUCT
set of attributes
packaging: how it is protected, presented and made recognisable
colour
design
wrapping
brand
style
service: all that comes with the product making it pleasant and comfortable
training
guarantees
spare parts
delivery
technical assistance
any type of support
installing and testing
Actual item
design
shape
quality
colour
size