4Ps Marketing Strategy - Essay Example

Module 4P’s Marketing Strategy Marketing is an important business task that involves the establishment of the consumers’ needs, determination of the target markets and identifying the products and services that are fit for these markets (Armstrong and Kotler 3). Additionally, it entails the promotion of products and services within markets. It is a key ingredient to the success of a business as it mainly focuses on customer satisfaction, consumer value and quality of goods and services that are offered. The commonly used strategy is known as the marketing mix which is composed of four variables referred to as the 4P’s of marketing. The 4P’s are product, place, price and promotion. This marketing mix brings together the four elements to yield the desired results in the target market and has been used by companies over the years to overcome the physical barriers that hinder general adoption of a product. This strategy can be use to help my father manage his business in a better way. PRODUCT OR SERVICE The product or service should be in line with the requirements of the public and their prospective customers. It is important to note that with growing market and ever changing customer needs, companies must develop their products and services to stand out in the highly competitive market (Armstrong and Kotler 5). When developing products, it is imperative to consider various aspects including quality, packaging, customer service as well as consequent after sale services. Product differentiation plays an important role at this juncture as it enables products to be noticeable in the market (Armstrong and Kotler 5). In addition to, product variation enables the company to satisfy the diverse needs of the customers. With regards to services, companies must ensure provision of top notch service that is unmatched in the specific industry to gain prominent in the market place. Companies are advised to review their products often so as to discard obsolete products. This process is referred to as product elimination which ensures maintenance of a fresh and new exciting product line that remains relevant in the market (Armstrong and Kotler 10). It is of great importance to consider other additional features concerning the product that may considerably affect the market (Armstrong and Kotler 3). Companies should choose names that are simple, eye catching and trendy. The name of the product go hand with the packaging and both play a key role in attracting customers. The other essential feature to take into account is the brand name which should be used to market the product or service. Lastly, companies must establish the appropriate cost of products and find out whether it can adequately yield profits. My father should ensure that the shops and apartments have been designed in an attractive way so as to attract the customers. He should provide additional services such as security and proper hygiene so as to attract and retain customers. PRICE Pricing is a vital element of any marketing strategy. Marketing decisions should be based on a comprehensive research on pricing (Armstrong and Kotler 3). This research offers knowledge on competitors’ prices on similar products in the market and the prospective demand. It helps companies to fix suitable prices for the consumer which has improves overall effectiveness of the marketing strategy. There are several elements affecting the price of a product or service. These include the company’s market share, cost of raw materials, number of competitors in the market and their marketing strategy as well as the consumers’ perception about the product or service. My father can charge low prices for the rental shops in order to attract customers for the first few months. There are different pricing methods that are employed by companies in the current times. The first is cost recovery pricing which is applied by marketers to ensure that they recover the cost of production (Armstrong and Kotler 15). On top of this, they add a reasonable profit margin to the final price of the product or service. For example, if a company incurred $100 in the production of a good or service, they will sell $120 and make a profit of $20. The second method that is used by companies is penetration pricing. This is widely practiced when venturing into a new market (Armstrong and Kotler 15). This is the suitable method of pricing in my father’s line of business. Companies set relatively low prices so as to attract customers. Companies then increase their prices after attaining a substantial market share. The other pricing method is that is widely used by companies is price skimming. This is adopted by companies launching their products for the first time in the market. They set high prices at first then reduce the prices when the late bloomers are buying the product. This pricing strategy is common that is used by technology companies in launching their new products. Examples of companies that apply this pricing method include technology companies to sell their newly launched products (Armstrong and Kotler 3). The pricing element is also important since it is use to establish the customer segments that should get a discount. PROMOTION This involves creation of general awareness of products and services in the market place. Promotion is referred to as the communicating the advantages and value of products and services to the prospective customers (Armstrong and Kotler 4). Promotion should be done in such a way that the consumers will be willing to buy a product or pay for a service regardless of the fact that it might be the first time they are hearing of it. This is done is done quantity discounts, gifts coupons and sales offers. It entails persuasion of consumers to become loyal customers by using sales promotion, selling, direct marketing and advertising. Companies may choose to one of these methods or a combination to promote their products or services. My father should advertise for the shops, apartments and clinic by using newspaper advertisements and popular websites to reach a high number of prospective customers. Companies should figure out the best way to get their marketing information to the target market. The company should use different methods of promotions depending on their audience and market segment (Armstrong and Kotler 7). Timing is a key component in promotion as companies should account for the season and wider environmental issues before launching their products in the market. Companies should also think about the promotion methods being employed by their rivals and how they impact on their own. With the invention of the internet, promotion has become easier, cheaper and more efficient. It is now possible for companies to advertise their products and services online thereby reaching a wider market segment. PLACE This is also known as the distribution channel where the consumers can conveniently purchase products. This includes location, distribution and methods of getting their products and services to the customers. In other words, it refers to the suitable ways and places in where consumers can access the goods and services (Armstrong and Kotler 6). It can be a physical store, distribution outlets and shops where customers can visit and purchase the products or access the services. The gas station and the supermarket are located strategically within the customers’ reach. The internet has made it effortless to buy goods online through websites including ebay.com. Market segmentation goes hand in hand with the 4P’s marketing strategy. Segmenting the market is important as it helps companies to get a better understanding of the behavioral, demographic and psychographic characteristics (Armstrong and Kotler 8). An ideal market segment is measurable, large enough to yield considerable profits, reliable in response to changes in the market and valuable in determining the marketing mix. Examples of strategies that are employed in market segmentation include concentration strategy. In this case companies specialize in producing a certain good or service and focus on a one segment. This is widespread in the production of luxury goods and has been used successfully by renowned brands to define them in the market place. My father’s business is an ideal case of market segmentation since it targets different market segments and customers’ with varying needs and requirement. The strategy can be used by companies to introduce a new product or service in the market or to assess the current strategy being applied by the company (Armstrong and Kotler 3). This can be done using a number of steps. The company should start by identifying a product or service and then analyze the four elements of the strategy. It should view these elements from the customers’ perspective. My father should apply the 4P’s strategy to run his business and update it often in accordance to the changing business environment and consumers’ preferences. In conclusion, it is essential for companies to constantly review their marketing strategy to keep up with the dynamic competitive business environment. Work Cited Armstrong, Gary & Kotler, Philip. Marketing: An Introduction. New Jersey: Prentice Hall, 2008. Print. Read More