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Marketing and Sales - Essay Example

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Assignment 3 The Significance of Place in the 4 Ps of International Marketing Every management student and marketing aspirant is familiar with the 4 P’s of international marketing Place, Promotion. Product and Price. These four concepts are essential to make any item sell profitably…
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Marketing and Sales
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Download file to see previous pages These three concepts form the backbone of many successful marketing strategies. But, the fourth P-Place is often overlooked by most of the marketing experts and business men. Every product should actually be produced, priced and promoted according to the place it is distributed. The company should decide whether to implement large-scale distribution in the area or selective distribution, based on the economic, social and cultural influences of the place chosen. A company can choose to distribute a product in a place intestivley, selectively or exclusively. The pricing and promotional budget should be determined based on which type of distribution is selected for a particular place. The marketing concept changed phase from "make-and-sell" to "sense-and-respond" way back in the past century (Kotler, 2008). Only companies producing exclusive products catering to the needs of people living in certain places thrive. They distribute the products only where there is ample need. For example, consider the ‘Voltas all weather AC’ designed and marketed for people living in deserts exclusively. The AC keeps the room cool during the scorching mid-days and heats the rooms automatically during the biting cold nights. They are much affordable than the room heaters used in the western countries and is portable. They can be used even in tents. The product was a great hit and it surpassed several competitors in sales revenues this summer. Integration of Place and Pricing Place is directly connected with pricing. Consider Marks and Spencer an Tesco departmental stores. M &S aims in selling branded, high cost products in all its stores no matter where it is placed. Tesco sells small packets of local products at an affordable cost in rural areas. It sells branded and costly products in its urban stores . This simple place related pricing helped the company to grow enormously in a short period of time, challenging the decades old M&S in profits. "Differentiation stems from uniquely creating buyer value" (Porter, 1985, p 150). Tesco did just that. They created a difference by understanding the buyer value pertaining to the place. Relationship of Place with Pr ...Download file to see next pagesRead More
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