<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<!-- saved from
url=(0078)
http://www.ngfl-cymru.org.uk/vtc/ngfl/bus_studies/gcse_m_smidman/unit3\
/4ps.htm -->
<HTML><HEAD><TITLE>The 4P's of Marketing</TITLE>
<META http-equiv=Content-Type content="text/html; charset=iso-8859-1"><LINK
href="The 4P's of Marketing_files/bus_stud.css" type=text/css rel=stylesheet>
<META content="MSHTML 6.00.2900.2180" name=GENERATOR></HEAD>
<BODY>
<H1>Unit 3 - The 4P's of Marketing - The Marketing Mix</H1>
<P>These are the basic elements of the MARKETING PLAN for any business:</P>
<P align=center>
<OBJECT
codeBase=
http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#ver\
sion=6,0,29,0
height=350 width=350 classid=clsid:D27CDB6E-AE6D-11cf-96B8-444553540000><PARAM
NAME="movie" VALUE="4ps.swf"><PARAM NAME="quality" VALUE="high">
<embed src="4ps.swf" width="350" height="350" quality="high"
pluginspage="
http://www.macromedia.com/go/getflashplayer"
type="application/x-shockwave-flash"></embed></OBJECT></P>
<P align=left><SPAN class=keyskill>PRODUCT</SPAN><BR>The business has to produce
a product that people want to buy. They have to decide which ‘market segment’
they are aiming at – age, income, geographical location etc. They then have to
differentiate their product so that it is slightly different from what is on
offer at present so that people can be persuaded to ‘give them a try’.</P>
<P><SPAN class=keyskill>PROMOTION</SPAN><BR>Customers have to be made aware of
the product. The two main considerations are target market and cost. A new
business will not be able to afford to advertise on national television, for
instance and would not wish to because its market will be local to start with.
Leaflets, billboards, advertisements in local newspapers, Yellow Pages and ‘word
of mouth’ would be more appropriate.</P>
<P><SPAN class=keyskill>PRICE<BR></SPAN>The price must be high enough to cover
costs and make a profit but low enough to attract customers. There are a number
of possible pricing strategies. The most commonly used are:</P>
<UL>
<LI><STRONG><FONT color=#000000>PENETRATION PRICING</FONT></STRONG> <FONT
color=#000000>– charging a low price, possibly not quite covering costs, to
gain a position in the market. This is quite popular with new businesses
trying to get a ‘toehold’.</FONT>
<LI><FONT color=#000000><STRONG>CREAMING</STRONG> – the opposite to
penetration pricing, this involves charging a deliberately high price to
persuade people that the product is of high quality. Luxury car makers often
use this strategy</FONT>
<LI><FONT color=#000000><STRONG>COST PLUS PRICING</STRONG> – this is the most
common form of pricing. Costs are totalled and a margin is added on for profit
to make the total price.</FONT> </LI></UL>
<P><SPAN class=keyskill>PLACE</SPAN><BR>The business must have a location that
it can afford, and that is convenient and suitable for customers and any
supplier.</P>
<HR>
<P align=center><A
href="
http://www.ngfl-cymru.org.uk/vtc/ngfl/bus_studies/gcse_m_smidman/unit3/mar\
ket_research.htm">Back</A>
| <A
href="
http://www.ngfl-cymru.org.uk/vtc/ngfl/bus_studies/gcse_m_smidman/unit3/uni\
t3_index.htm">Home</A>
| <A
href="
http://www.ngfl-cymru.org.uk/vtc/ngfl/bus_studies/gcse_m_smidman/unit3/lif\
e_cycle.htm">Next</A></P>
<P align=center><A
href="
http://www.ngfl-cymru.org.uk/vtc/ngfl/bus_studies/gcse_m_smidman/index.htm\
">Index</A></P>
<P><BR></P></BODY></HTML>
Offline 
Send Email