The marketing mix is also known as the "four Ps" because it includes not only product strategies but also the tools of promotion, price and place (distribution). Enumerated in the marketing plan, decisions in all of these areas are key to meeting the needs and wants of target consumers, stimulating sales and building brand loyalty.
Product Strategy
Whether the firm's market offering is a tangible good like a kitchen appliance or an intangible service like health care, product strategy defines its features, functions, benefits and image. In choosing among different strategic alternatives, the marketer must be responsive to customers' preferences and alert to the competition. For example, a refrigerator or stove with a luxury image might be made of costly stainless steel and provide a wider range of temperatures than other brands. A physician's office could compete with other settings for family health care by offering home-like furniture and toys.
Promotion Strategy
Marketers may choose among various tools like advertising, sales promotion, personal selling and public relations to communicate the benefits of their product and convince people to buy. Promotion strategy is related to the nature of the product. For example, personal selling is effective in promoting expensive, high-involvement offerings like cars or houses, while discount coupons and other types of sales promotion work well for low-cost, frequently purchased items like soap or cereal. Advertising is important when introducing a new product or building brand visibility.
Price Strategy
The price of a product is a measure of its value to consumers. While price-setting is usually linked to profit goals, it also has several strategic dimensions. For example, a high price can convey luxury and status. A low price can discourage competition. Price strategy is especially important when introducing a new product or entering a new market, because consumers may decide whether or not to try an unfamiliar brand based largely on how much it costs.
Place Strategy
Place -- also known as distribution -- is a set of strategic choices related to convenience and accessibility. More specifically, it is about making products available to target buyers where and when they prefer to shop. Low-cost, frequently purchased items like toiletries and packaged foods are typically distributed through the largest possible network of wholesalers and retailers. But specialty goods, like fine jewelry or Belgian chocolate, may be limited to a small number of outlets to reinforce the exclusivity of the brand.
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