Marketing own product is basically how you position it to satisfy your market needs. There are four critical elements in marketing the products and business. The four Ps of marketing helps to structure the components that make up a brand’s offering, differentiators and marketing.
The Four Ps are as follows:
1. Product 2. Price 3. Promotion 4. Place
Product also called services is what a company sells. Along with the product, the customer is attracted to the way it is packed. Other important attributes are quality, features, options, services, warranties and brand name. A product can either be a tangible good or an intangible service, but it should fulfill the need of consumers.
For example, a luxury product should create the right image for “customers who have everything” while many basic products must be created keeping in mind about the price conscious consumers.
Price refers to the cost of the product to be sold or it’s service. Price of the product has an impact on profit margins, supply, demand and marketing strategy. The price of the product should be appropriate as per the quality and its value in the market. The price strategy should be based on product, customer demand and competitive environment.
Method of fixing the price is divided into the following category: • Cost based pricing: Under this method, the price of the product is fixed by adding the amount of desired profit margin to the cost of the product. Example: If a particular soap costs the marketer Rs. 8 and he desires a profit of 25%, the price of the soap is fixed at Rs 8 + (8x25/100) =Rs. 10.
• A Competition based Pricing: In case of products where market is highly competitive and there is negligible difference in quality of competing brands, price is usually fixed closer to the price of the competing brands. It is called ‘young rate pricing’ and is a very convenient method because the marketers do not have to worry much about demand and the cost and effect the change as per the changes by the industry leaders.
• Demand based Pricing: Sometimes prices are calculated by the demand for the product. Under this method cost and competitive prices are not important, rather the marketers try to ascertain the demand for the product. If the demand is high they decide to take advantage and fix a high price. If the demand is low, they fix low prices for their product.
• Objective based Pricing: It is used to introduce new (innovative) products. If, at the introductory stage of the products, the organization wishes to capture large parts of the market and discourage the prospective competitors to enter into the fray, it fixes a low price. Alternatively, the organization may decide to earn high profit by taking advantage of a group of customers who give more importance to their status or distinction and are willing to pay even a higher price for it. In such a situation they fix quite high price at the introductory stage of their product and market it to only those customers who can afford it
Promotion is the way to promote the product through advertisement. The purpose of promotion is to make people aware of the product, its usage and why it is different from others. Product’s advertisement can be done through different ways. Some of them are as under:
• Radio • Television • Print • Electronic
It is often said that marketing is about putting the right product, at the right price, at the right place, at the right time. “Place” refers to the distribution channels used to get your product to your customers.
Example: You own a small retail store or offer a service to your local community, then you are at the end of the distribution chain, and so you will be supplied directly to the customer
Vaishnavi Agrawal loves pursuing excellence through writing and have a passion for technology. She has successfully managed and run personal technology magazines and websites. She currently writes for intellipaat.com, a global training company that provides e-learning and professional certification training.
The courses offered by Intellipaat address the unique needs of working professionals. She is based out of Bangalore and has an experience of 5 years in the field of content writing and blogging. Her work has been published on various sites related to Hadoop, Big Data, Business Intelligence, Cloud Computing, IT, SAP, Project Management and more.