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Product, price, promotion and place: the four p's of marketing

Were you a cloth baby or a paper baby?

Before the 1970's, virtually a|| infants were covered in cloth diapers. Some time in the 1960's, however, the firm of Procter & Gamble decided to investigate the possibility of producing and selling paper diapers.

As a first step, the company conducted surveys to determine і parents liked the idea of disposable diapers. They did. The next step was to find a way to manufacture a pa per diaper that could profitably be sold at a price consumers wou|d be willing to pay.

You probably know the end of this tale. P&G developed a disposable paper diaper. Pampers and competing brands were so successful that most parents today prefer them to cloth diapers.

Disposable diapers stand as a classic example of the Successful application of what is now described as the total marketing concept.

The total marketing concept involves four steps, or, as they are often called, the four P's of marketing — product, price, promotion and place. Product. The place to begin is with the product itself. A business must determine what kind of product potential customers want. Companies employ very complex market research techniques to find out. Surveys by phone, mail, or personal interview can reveal exactly what's on the customer's mind. The product warranty card that you return after a purchase provide marketing information too.

You might be wondering how asking a few people what their preferences are determines what others want as well. Sophisticated research mathematics applied to a sample of consumers can typify the rest of the consumers. If we can find out what a few want, we can assume that the others in the group or population will want the same things. Deciding who should be in the sample is the problem. Researchers have very detailed formulas for constructing marketing samples.

The questions asked by researchers will depend on the particular purpose to be served. For example, a long-range concern fora company might be to find out what new products consumers will want in five or ten years.

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