Intro to Marketing/4Ps

The Marketing Mix - 4Ps Grade 10 Business

What is Marketing?

Marketing is the process of advertising, selling and distributing a product or service to meet customer needs

What are the 4Ps of marketing?

Product, Price, Place, Promotion

What is the Product in Marketing?

An item that satisfies a need or want. Products are divided into physical goods, intangible services and ideas

State the Key Aspects of a Product

• Features: What makes it unique?

• Benefits: How the product helps customers (convenience, durability, efficiency)

• Packages: How the product is presented to consumers?

• Quality & Reliability: Product should be reliable and perform as expected

What is Pricing in Marketing?

Pricing is the process of determining the value that company will receive in exchange for its products or services

Explain how pricing affects customer perception

• Some customers judge low product prices as poor quality

• Some high prices may mean good quality but drive away customers

What are some pricing strategies? (P1)

• Cost Based: Price is set by calculation of production cost and adding additional amount to ensure profit

• Competitive: Pricing is based on what competitors charge

• Value Based: Price is based on perceived customer value rather than costs

• Dynamic Pricing: Price change in real time based on demand, competition, customer behavior, etc

What are some pricing strategies? (P2)

• Penetration: Product is initially priced low to attract customers

• Skimming: Products start at a high price and lowers over time

• Psychological: Pricing products at $9.99 instead of $10 to make them seem cheaper

• Freemium: Basic product is free, but prenium feature costs money

What is Price in Marketing?

How and where the consumer buys the product or service (also known as distribution)

What is a Distribution Channel?

The chain of businesses of which a good or service passes until it reaches the end consumer. Make products available in the right place at the right time in the right quantities. There are 4 distribution channels.

What is Direct Distribution?

When a company sells products/services directly to consumers without intermediaries

(Intermediary: Person or organization that helps move products from manufacturer to final consumer)

What is Indirect Distribution?

Distribution that involved intermediaries such as retailers, wholesalers, and distributors to reach customers.

Retailer: A business that sells goods directly to consumers for personal use

Wholesaler: A business that buys products in bulk from manufacturers and sells them to retailers or other businesses at a lower cost

State the types of distribution and their function

• Integrated Distribution: Combines direct and indirect channels to maximize outreach and profits

• Specialty Distribution: Focuses on niche markets or exclusive products that require unique placement strategies - channels are limited

What is Promotion in Marketing?

• Promotion is about how businesses communicate with customers to drive sales and build brand awareness

• Goal: Customers buy as much as possible

Name 6 ways Promotion is Used to Solve a Problem

• New Release: No one knows about it yet

• Low Sales: Customers may not know about the product or see it’s worth

• High Competition

• Customer Retention: To keep existing customers engaged and coming back

• Product Rebrand

• Clear Excess Inventory

What are some types of discounts?

• Percentage - Get 15% off your order

• Dollar - Off Discounts: Save $10 on purchases over $50

• First Time Purchase: New Customers get 10% off

• Seasonal: Holiday Sales (Black Friday)

• Quantity - Buy One, Get One Free

• Student & Senior Discounts: Special Pricing for certain groups

• Loyalty discounts: Rewards for repeat customers

• Flash Sales: Limited time deals to create urgency

What are some other forms of Promotion?

• Coupons

• Product Demo

• Bundle Deals

• Samples