hese are the basic elements of the MARKETING PLAN for any business. PRODUCTThe business has to produce a product that people want to buy. They have to decide which market segment they are aiming at age, income, geographical location etc. They then have to differentiate their product so that it is slightly different from what is on offer at present so that people can be persuaded to give them a try. PROMOTIONCustomers have to be made aware of the product. The two main considerations are target market and cost. A new business will not be able to afford to advertise on national television, for instance and would not wish to because its market will be local to start with. Leaflets, billboards, advertisements in local newspapers, Yellow Pages and word of mouth would be more appropriate. PRICEThe price must be high enough to cover costs and make a profit but low enough to attract customers. There are a number of possible pricing strategies. The most commonly used are PENETRATION PRICING charging a low price, possibly not quite covering costs, to gain a position in the market.
This is quite popular with new businesses trying to get a toehold. CREAMING the opposite to penetration pricing, this involves charging a deliberately high price to persuade people that the product is of high quality. Luxury car makers often use this strategy COST PLUS PRICING this is the most common form of pricing. Costs are totalled and a margin is added on for profit to make the total price. PLACEThe business must have a location that it can afford, and that is convenient and suitable for customers and any supplier. The Marketing mix is a set of four decisions which need to be taken before launching any new product. These variables are also known as the 4 Ps of marketing. These four variables help the firm in making strategic decisions necessary for the smooth running of any product / organization.These variables are Product
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