FOUR Ps OF MARKETING

FOUR Ps OF MARKETING

Abstract

Companies use marketing mix strategies that foresee the achievement of marketing objectives. The product mix, place mix, promotional Mix, and pricing Mix are key in revenue generation strategies of a company. Launching of new products and the success of the product is centered on the four P strategies. The revenues of a company are solemnly dependent on the marketing strategies a company employs. The marketing communication process enables the sensitization and sales promotion of a company’s product.

Table of contents

Abstract…………………………………………………….. 2

1. Question 1 …………………………………………………..4

1.1. Introduction

1.2. Product mix

1.3. Place mix

1.4. Promotion mix

1.5. Pricing mix

2. Question 2………………………………………………..8
3. Question 3……………………………………………….9
4. Conclusion………………………………………………10
5. References……………………………………………….11

Question 1

1.1.Introduction

In Apple inc. the use of the 4Ps of marketing is strategic as it gives them a competitive edge against their competitors like Google, Samsung, and Sony. The 4Ps show how Apple Inc. is compatible with the needs of its global market and its operational business activities. (Cite)The global market has its specifications on the conditions preferred for its information technology, services on the internet, or online services and the electronics consumed by the consumers. These factors require a firm to be innovative and creative in its product development to ensure the niches in the market are filled. Apple inc. therefore developed the Apple watch to meet the requirements of consumers who needed quality multipurpose watches. The new product needed to be introduced and placed in the market to achieve its strategic goal. Companies use the marketing mix too strategically, and tacticfully implement their marketing plan (Constantinides 2006). Apple inc. uses the variables of marketing, that is, product, place, promotion and price to implement its marketing mix objectives on the market. The 4Ps in this case entails the globalization of business operation in the consumer based electronic, IT, Internet service and online or digitized information market.

To market the Apple watch when it was launched, Apple used premium branding as its main focus. These involved the capitalization of quality premium brand that was supported by the 4Ps to ensure a strong brand image is upheld (cite apple event). For instance, the prices attached to the apple watch are high which corresponded to the consumer perceiving that the product was premium and in turn relating the companies output to be of high quality and high value. These actions in the long run, enables achievement of revenue objectives and fulfillment of Apples Inc. vision and goal.

1.2.Product Mix

Apple Inc. Focuses on goods and services that involve information technology and also explore the addition of non-information technology related products. The use of product based segmentation which encompasses the utilization of human capital and business operation strategy is utilized to achieve the corporate structure of Apple (Yoo, Donthu, & Lee, 2000). The apple watch development was an addition on to the existing mobile devices product line of the company. Product mix in this case enable the development of a product that would meet the qualifications of the business line and overall show that the company still operated in the manufacturing of electronic products for the consumer market.

1.3.Place Mix

These involve the process of determining and selecting the appropriate place which Apple Inc. would distribute the newly developed Apple watch. (Constantinides, E. (2006).)The company had an advantage as it had its company-owned stores and other authorized distribution dealers. The company would utilize their Apple stores, online stores, authorized dealers and other telecommunication companies. Apple stores being a subgroup of the company its physical presence and location would place the Apple watch in areas that customers are already aware of and accessible to them. The Apple Inc. website also created a platform where the consumers would easily purchase the watch at the convenience of their phones through online means. Online buying enable consumers to globally access the Apple watch despite their geographical locations. These would strategically place the Apple watch in areas accessible to the consumers’ therefore encouraging purchase. Stores like walmart are authorized sellers who stocked the Apple watches to promote sells.

1.4.Promotion Mix

Apple Inc. used a variety of communication strategies to reach the target customers. First, it used advertising on different platforms like Google and technological news websites. These were enabled by the partnership agreements between the two parties on a promotional contract. The company also used personal selling where employees on the stores would persuade a potential customer to purchase the Apple watch through provision of detailed specific information about the Apple watch. The company also used sales promotion to introduce the Apple watch in to the market. They did this by offering discounts and bundling of different products with the watch as a gift or complementary product. They also used public relation strategy where they approached media houses to do interview and at the same time create awareness on the existence of the newly launched Apple watch (Datta et al. 2017). These efforts promoted the Apple watch making it a globally known product and creating awareness of it existence across customers worldwide.

1.5.Pricing Mix

Apple inc. was able to set prices and price points and ranges of the Apple watch. The company used the approach of premium pricing and freemium pricing strategies to achieve its goals. The apple watch was set at a higher price as compared to other smart watches in the market. These implementations saw that revenues increased and the premium branding brought about competitiveness. The company also used freemium strategy where they the Apple watch to be free but upon conditions that the consumer has to purchase another product at a higher price (Datta et al. 2017). These two strategies combined ensured that the Apple watch was successfully incorporated in the market.

Question 2

Farah should not price her services blindly but utilize perception to set prices. She can use the pricing strategies below to increase her profits (cite the book).

1. Not use similar prices for the services offered, this will create value for each service and create uniqueness for the particular service. These will stimulate consumers to pay for different services.
2. She may use psychology of anchoring where she may provide persuasive information to the clients for decision making. For instance she may explain how some hairstyles serve for a longer period than others and therefore charge more.
3. She can offer incentives to prompt more spending by the client. For instance she may give a manicure as a rider when a client spends beyond a set amount.
4. She may also be a price leader to or follow with competition. She should set prices that are not too low to incur losses or too high to churn the customers away.
5. She may segment her prices to attract a wide range of customers with different financial capabilities.
6. She can offer discounts to customers who get more than one service at her saloon
7. She may also bundle services and set collective prices for the services.

Question 3

Marketing communication are activities that assist in promoting a product to the market. These are also known as promotional Mix which entails a combination of activities that carry out market carry out marketing objectives. (Cite)Advertising is among the commonly used promotional Mix used by companies. Advertising entails any form of idea, services and goods that are paid by an identified sponsor. Adverts are tailored to a group and the use of large mediums like radio, TV and newspapers are mostly used. Adverts also are targeted to individuals by the personalization of the messages sent. The customization is enabled through data mining and big data analytics that enable personal profile development and behavior analysis.

Conclusion

It is evident that how a company implements the marketing mix strategies determines the revenue streams projections and the product positioning in their target market. When launching a new product a company needs to develop the product to fit its line of business and be in line with its corporate goals. The company should ensure that the products are easily accessible by the consumers therefore satisfying needs of consumers. The creation of awareness of the existence and benefits of the product is also key through the use of promotional Mix like advertisement. The prices of the products should be competitive in the market to ensure the purchasing of the product takes place and also for the firm to stay competitive e in the market. Therefore, it is important a company to have a competent marketing department that implements the four Ps of marketing.