4P's do marketinhg

4P's Introduction 4 P's of MARKETING
Mike Volker What is Marketing? Marketing vs Selling? Planning vs Forecasting?

The 4 P’s
Product Price Place Promotion Interdependent on each other

Product
What is it? What “need” does it address? What are the functional specs? What are its Features & Benefits? What are the economics? -what will it cost me, what will it save me?

Some Product strategies
Features trade-offs Positioning – vis a vis competitors Market (consumer) preferences Kill your own products (before competitors do) Options and bundling

Price
What is Price? (vs cost?) Price elasticity Channel Pricing? Discounts Terms Currency

Some pricing strategies
Markup vs market? Give it away (e.g. internet services) Forgo normal margins (e.g. Prius) Raise price to luxury levels (homes, boats) Offer Price protection (e.g. computer) Payment Plans (cell phones, cars, etc)

Place
Distribution Channels Path to get to buyer? cost (price) tradeoffs control issues rationing

Some distribution strategies
Offer exclusivity (eg by region) Co-operative advertising Offer Price protection (e.g. computer) Re-stocking privileges Returns policies

Promotion advertising events press releases trade shows direct vs indirect brand awareness brochures, datasheets freebies

Some promotion strategies
Co-operative advertising Branding – define & build the brand (brand portfolio) Internet presence Follow Up readiness

It’s easy, right?
Product = the best there is! Price = the cheapest one! Place = ubiquitous! Promotion = $megamillions! RESULT: Market Dominance Get rich quickly!

The reality
Product = OK, but lots of “me-too’s” Price = a little pricey Place = hard to find & get Promotion = no one has heard of it RESULT: Sell fewer than expected Go broke fast

The Solution a Constrained Optimization Problem ….and a Realistic Plan

The Internet a profound impact on marketing just seeing the beginning you cannot afford not to be internet ready the internet