Roheli, S.S., M.Pd
The Four P’s
The Four
P’s
THE FOUR P’s
Marketing
THE FOUR P’s
Marketing
The Four P’s
Buying, selling, market research, transportation, storage, advertising – these are all part of the complex area of business known as marketing. In simple terms, marketing means the movement of goods and services from manufacturer to customer in order to satisfy the customer and to achieve the company’s objectives. Marketing can be divided into four main elements that are popularly known as the four P’s: product, price, placement and promotion. Each one plays a vital role in the success or failure of the marketing operation.
THE FOUR P’s
Marketing
The Four P’s
The product element of marketing refers to the good or service that a company wants to sell. This often involves research and development (R&D) of a new product, research of the potential market, testing of the product to insure quality, and then introduction to the market.
THE FOUR P’s
Marketing
The Four P’s
A company next considers the price to charge for each product. There are three pricing options the company may take: above, with, or below the prices that its competitors are charging. For example, if the average price of a pair of women’s leather shoes is $ 27, a company that charges $ 23 has priced below the market; a company that charges $ 27 has priced with the market; and a company that charges $ 33 has priced above the market. Most companies price with the market and sell their goods or services for average prices established by major producers in the industry. The producers who establish these prices are known as price leaders.
THE FOUR P’s
Marketing
The Four P’s
The third element of the marketing process-placement-involves getting the product to the customer. This takes place through the channels of distribution. A common channel of distribution is:
Manufacturer → wholesaler → retailer → customer.
Wholesalers generally sell large quantities of a product to retailers, and retailers usually sell smaller quantities to customers.
THE FOUR P’s
Marketing
The Four P’s
Finally, communication about the product takes place between buyer and seller. This communication between buyer and seller is known as promotion. There are two major ways promotion occurs: through personal selling, as in a department store; and through advertising, as in a newspaper or magazine.
The four elements of marketing → product, price, placement, and promotion – work together to develop a successful marketing operation that satisfies customers and achieves the company’s objectives.
Exercise
Look at the terms in the left-hand column and find the correct synonyms or definitions in the right-hand column. Copy the corresponding letters in the blanks.
1. _____ insure (line 9) a. choice
2. _____ retailer (line 22) b. set as price
3. _____ price with the market (line 15) c. one who sells in small amounts
4. _____ option (line 12) to customers
5. _____ competitor (line 13) d. please
6. _____ personal (line 27) e. guarantee
7. _____ objective (line 31) f. the path goods take when moving from
8. _____ satisfy (line 30) manufacturer to customer.
9. _____ take place (line 25) g. private; relating to an individual
10 _____ channel of distribution (line 20) h. accomplish
11. _____ charge (line 11) i. to charge an average price
12. _____ achieve (line 31) j. occur; happen
k. rival; opponent
l. goal
Thank You
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