Understanding The 4Ps of the Marketing Mix
In the marketing mix, price is the only element that generates revenues. There are several pricing strategies, among them penetration, skimming, competition, product line, bundle, psychological, optimal, cost based and cost plus pricing (Port 1999)
Penetration pricing- the firm sets a very low price to capture market share, then raises it later. For instance a mobile phone service provider may charge extremely low prices and increase when it gets subscribers.
The 4Ps of the marketing mix are:
Product: The goods or services a company offers to its target market, including design, features, quality, and branding.
Price: The amount of money customers are willing to pay for the product, considering factors like production costs, competition, and customer perception of value.
Place: The distribution channels and methods used to make the product available to customers, including decisions about logistics, inventory management, and sales locations.
Promotion: The marketing activities employed to communicate and promote the product, such as advertising, personal selling, sales promotion, and public relations. The aim is to create awareness, generate interest, and persuade customers to purchase the product,
Share this paper