Marketing Mix (7Ps) PDF

MARKETING MIX (7P's) Designing a Marketing **Program or strategy** that will send the value of your product to the target customers. It is a business mechanism to effectively market products. Marketing Mix is a set of controllable and connected variable that a company gathers to satisfy a c...

MARKETING MIX (7P's) Designing a Marketing **Program or strategy** that will send the value of your product to the target customers. It is a business mechanism to effectively market products. Marketing Mix is a set of controllable and connected variable that a company gathers to satisfy a customer better than its competitor **PRODUCT** Marketing Strategy starts with the product. This is important part of planning in terms of distribution system or price setting. PRODUCT - good or services that is produced to meet the consumers' wants, tastes and preferences. **2 Types of Goods** **2 Types of Product** ---------------------- ------------------------ Business Goods Consumers Service Consumers Goods Professional Service  **PLACE** It is the location where the buyer and seller exchange goods or services. The "distribution channel" **PRICE** The amount or value that a customer gives up to enjoy the benefits of having or using a product or service. **Price is determined by:** 1\. A BUYER IS WILLING TO PAY 2\. A SELLER IS WILLING TO ACCEPT 3\. THE COMPETITION IS ALLOWING TO BE CHARGED. **Elements in Price Setting** - COSTS - MARK UPS - MARGINS **PRICING STRATEGIES** 1\. Penetration Pricing - The price of products and services were artificially low in order to gain market share. - If achieved, the price is increased. - A market strategy used by business to attract customers to a new product by initially setting a low price. 2\. Skimming Pricing - The price of products and services has a high price on the onset. Then, there will be changes in price. Lowering it to attract more consumers. High Price attracts new competitors in the market, and the price inevitably falls due to increased supply. - The main goal is to maximize the profit potential of a newly launched product's novelty. 3\. Competition Pricing - A pricing method in which a seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand. - Commonly used by businesses with similar products while the attributes remain similar. 4\. Product Line Pricing - Reviewing and Setting prices for multiple products that a company offers in coordination with another. - Product line pricing strategies aim to maximize the sales of different products by creating more complementary, rather than competitive products. **PROMOTION** - An element in marketing mix which enables the entrepreneur to inform potential customers about the products availability, - Also, to educate the consumers about the product. - As an entrepreneur you have to create awareness about the product or service by establishing an effective communication program.