Marketing: The 4Ps, Strategies, and Distribution Channels
Marketing
Definition
Marketing is a set of activities undertaken by a company to meet consumer needs and desires for mutual benefit.
The Marketing Mix (4Ps)
The marketing mix, also known as the 4Ps, is a set of techniques or elements that a company can use to meet consumer needs and achieve marketing goals. These elements are:
Product
A product is any good or service that a company manufactures and offers to satisfy a specific need. It can be tangible or intangible.
- Product Differentiation: This involves varying one or more attributes of a product to make it stand out from the competition and appeal to consumers as something new and different.
- Product Types: Consumer products (durable and non-durable), industrial products, product lines, and services.
- Product Portfolio: The entire range of products that a company offers in the market.
- Product Line: Groupings of products made by a company with homogeneous characteristics.
- Product Life Cycle: The duration of a product in the market, consisting of the stages of introduction, growth, maturity, and decline.
- Packaging: The design and materials used to enclose or protect a product. It plays a crucial role in attracting customers, providing information, and ensuring product safety.
Brand
A brand is a name, word, design, symbol, or a combination of these that identifies the goods and services of a company and differentiates them from the competition.
- Branding Strategies:
- Single Brand (Umbrella Brand): Using the same name for all products manufactured by the company.
- Multiple Brands: Using more than one brand (individual trademarks, product line brands, second brands).
- Dealer Brands (Private Label): Brands manufactured by a particular industry and offered to consumers under the brand name of the distributor or retailer.
Price
Price is the amount of money the buyer of a product or service gives the seller in exchange for acquisition. It is determined by factors such as costs, demand, and competition.
- Price Elasticity: When the quantity demanded of a product varies by more than the price ratio, demand is said to be elastic; otherwise, it is inelastic.
- Pricing Strategies: Maximal, penetration, psychological, and based on the product life cycle.
Promotion
Promotion encompasses all marketing techniques that aim to communicate product features and highlight attributes to enhance customer desire and retain existing customers. It consists of:
- Advertising: The action of transmitting a specific message using mass media, paid for by a company, intended to influence consumer behavior by informing them about product features and persuading them to buy.
- Advertising Objectives (AIDA): Attract attention, arouse interest, create desire, and achieve action.
- Advertising Principles: Simplicity, originality, repetition, timing, and sincerity.
- Sales Promotion: A set of activities that a company undertakes to increase product sales for a short period.
- Personal Selling: Direct interaction between the seller and the customer.
- Public Relations (PR): Activities that strengthen the relationships a company has with stakeholders, both internal and external, and contribute to the formation of the company’s image.
Distribution
Distribution is the set of processes that move a product from the company to the consumer.
- Distribution Functions: Transportation, storage, information, and customer service.
- Distribution Channels: The paths used to get products from the producer to the consumer.
- Direct Channel: The producer sells directly to the customer.
- Indirect Channel: Intermediaries (wholesalers and retailers) are involved in the distribution process.
- Alternative Channels: Franchising and e-commerce.
Franchising
Franchising is a type of contract where a franchisor grants a franchisee the right to use a known brand and business methods in exchange for a fee or royalty.
E-commerce
E-commerce is the sale of goods and services electronically, particularly through the internet. Its main feature is that consumers do not have physical contact with the product.
- Telemarketing and Automated Sales:
Merchandising
Merchandising is the set of activities that help to display and promote a product at the point of sale.
- Elements of Merchandising: Use of posters, product placement, attractive displays, lighting, in-store promotions, demonstrations, and tastings.