topic / Marketing

Marketing

In recent years marketing has become a driving force in most companies. Marketing includes all the business activities connected with the movement of goods and services from producer to consumer. On the one hand, marketing consists of transporting, storing and selling goods and services and on the other hand, a series of decisions you make during the process of moving goods from manufacturer to user. Marketing operations include product planning, buying, storage, pricing, promotion, selling, credit, traffic and market research.

The right marketing mix is made up of four main elements – "The Four P's" – the right Product at the right Price, available through the right channels of distribution (Place) and presented in the right way (Promotion).

Product means the goods or service that you are marketing. Products have a life-cycle. Forward-thinking companies develop new products to replace the one whose sales are declining and coming to the end of their lives. A "total product" includes the image of the product, its features and benefits.

Price is the sum of money, which the consumers should pay to get the goods. The firm offers retail and wholesale prices, reduced prices and discount, sale and credit. The quoted price should meet the value of the goods. There are three pricing options the company may take: above, with and below the prices that its competitors are charging.

Place means getting the product to the customer. Decisions have to be made about the channels of distribution and delivery arrangements. A common channel of distribution is: “Manufacturer – wholesaler – retailer – customer”.

Wholesalers usually sell large quantities of a product to retailers, and retailers sell smaller quantities to customer. Each stage usually adds "value" to the product to justify the costs.

Promotion is presenting the product to the customer. It involves the packaging and presentation of the product, its image, the product name and advertising. Price-lists, after-sales service, public relations and personal selling are also the elements of promotion. Each product has features that differ it from other products on the market.

Marketing operations are very expensive. They take more than half of the consumer's dollar. The Four P's work together to make marketing successful.

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Answer the questions.

1. What is marketing?

2. What are the four main elements of marketing?

3. What is involved in the product element of marketing?

4. What are the three pricing options that a company may take?

5. Using $275 as an average price for word processing software, what are examples of pricing above, -with, and below the market?

6. What does placement involve?

7. What is a common channel of distribution?

8. Do you think McDonald's provides food on a wholesale or retail basis?

9. What are some advertising media besides magazines and newspapers?

10. If you were to specialize in one of the marketing elements, which one would you choose—product, price, placement, or promotion? Why?