Product
Products are services as well as physical products like shampoo and ice cream, they are break down cover and insurance as well. There are different parts of the a product.
The Core Benefits - what the product does
Then there is the Brand Name, The reliability, after sale support i.e. warranty, credit facilities i.e. pay a certain amount a month over a certain period of time.
There is a product life cycle.
Introduction - introducing the customers to the products.
Growth - The increase in sales of the product, therefore it becomes more popular. However other companies may copy the same idea and similar products will begin to appear.
Maturity - This is where the sales level out.
Decline - The eventual decline of the product
Price
The price is how much a customer will pay for a product. The price determines the products survival, if a product is very poorly designed but set at a high price, the product will most likely fail. Adjusting a price has an impact on the marketing strategy. The price of the product should complement the other elements of the marketing mix.
There are 3 different pricing strategies that a marketer should be aware off.
Market Skimming Pricing - This is a pricing strategy that sets a high price for the product or service at first, but then it lowers the price over time, this makes the consumer feel that they are getting a high priced/ high quality product for a bargain price.
Marketing Penetration Pricing - This is a pricing technique that sets a relatively low entry price on the market, lower than its marketing price. this is too attract the attention of new customers and then when the price goes up, the customer loyalty will already be there, helping the products survival. This is a short term pricing method.
Neutral Pricing - this sets
- The price is the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often; it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix.[1]
- When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing, marketing penetration pricing and neutral pricing. The 'reference value' (where the consumer refers to the prices of competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account
Promotion
There are many methods of promotion methods of communication that marketers use to provide information about the product to different people. There are different elements of promotion, including:
- Advertising
- Public Relations (PR)
- Personal Selling
- Sales Promotions
Advertising covers many forms, including:
- TV and Cinema Adverts
- Radio Adverts
- Internet Adverts
- Print Adverts
All of these ways of advertising are designed to put the product in the public eye and make the consumers want to consume it.
The PR ways of Promotion include:
- Press Releases
- Sponsorship Deals
- Exhibitions
- Conferences
- Seminars or Trade Show and other events.
Word of mouth is one of the most informal way of promoting a product. Its done by normal, everyday people that genuinely like a product and think that it is worth talking about. Getting a product talked about is one of the most important forms of promotion there is, and it doesn't cost a thing.
Place
Placing a product that is convenient for customers to access it. Place also has to do with distribution. Some products sell better in different parts of the world. There are various strategies such as:
- Intensive Distribution - this is a strategy where a company sells through as many outlets as possible so that consumers see the product everywhere they go e.g. supermarkets, pharmacies and petrol stations. Drinks are usually available through this type of distribution.
- Selective Distribution - this is the strategy that is somewhere between intensive distribution and exclusive distribution, where only a few retailers hold the product in a specific geographical area. This is more suitable for high-end items i.e. designer or prestige goods.
- Exclusive Distribution - this is where only a select few dealers are authorised to sell the product in certain territories.
- Franchising - This is a strategy that uses another firms as a successful business model. They build chain stores and have their name in as many places as possible i.e. McDonalds.
These can complement the other parts of the marketing mix.
My thoughts on the 3 P's
I think the 3 P's are helpful in some respects to give a general idea of what marketing is about, however i do think that they are a bit outdated.
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