The basic principles of marketing consist of product, price, place and . Together, these four principles are known as the “4 P” (for its initials in English) marketing, and include the integration of marketing. For a marketing strategy to be effective, the four components must be used correctly. The challenge for business owners and industry professionals is to determine the appropriate method for each area, and integrate successfully.
The product you sell can be a physical item or service intangible, such as sending home or service cleaning. When you create your product, you need to consider factors such as the name, packaging, different types of uses and safety when used. It is also necessary to determine how the product appeals to a specific market segment. The product should meet the needs of a particular group of people, such as professionals, housewives, business owners, students or golfers.
You need to determine the price of the product. If the price is too high, you Keep far to potential buyers. If it is too low, you may have difficulty obtaining profits. You will also have to consider the price of the competition. Some models of common prices include the cost price plus a profit, in which a fixed percentage of the cost of production is added, and the price based on the value of the product, in which the price is set according to the value consumers perceive the product. The latter kind of price is often used in more expensive luxury items.
The concept of place refers to the distribution channels; this is where the product will sell and how to hit the market. If you operate a business whose headquarters is home, as sales on eBay, it is likely that the market is Internet, and you want to send your products directly to consumers. Larger businesses, such as consumer goods manufacturers can sell their products at a grocery wholesaler, who then distributed to retail stores in the field.
Promoting the product or service involves raising awareness among potential customers about its existence. It is likely that advertising is the most famous form of promotion, using media such as television, radio, newspapers and magazines. The websites are also used as an advertising medium. Promotion can serve a variety of purposes, such as gaining market share, improve brand name or image, or bring to market a new product. The effective promotion will create the need or desire for the product, which, ultimately, will lead to increased sales.