4P. Product, Price Promotion and Place

Week 42.1. 4P. Product, Price Promotion and Place

Here is the definition of 4P in Wikipedia.

http://en.wikipedia.org/wiki/Marketing_mix

Let see how 4P affects our precious metal market.

Product : Whether you buy from me or someone else it is the same product 1 oz silver bar. However, you may need to inspect the goods condition whether got any scratches etc.

Sol: Offer some other product which nobody can offer. If it’ s the same product complete on price, place and promotion.

Price : Well, there are many avenue for one to view the current prices offered by others. Your price must be among the lowest at least in your region. Those with big capital will win-lah.

Promotion : Whenever there is a product for sales, how many people know about you or your product? How quickly they know about it? Must do multi-channel marketing, blog, email, facebook, ebay etc to get the coverage.

Place : Since postal services may be unreliable depending on your lucky. On top of that, you may want to COD since the item you buy is somewhat expensive and you would like to see the real stuff before handling over the $ to them. Thus, location is important. If U R at KL CC, KL SENTRAL etc SENTRAL fatt fatt fatt. 228 lah. if U R at Ulu Ulu place, then 224 lah.

As you all know most sellers are doing it part-time, so far as of now who is the winner in this game. Well, those who have price, promotion and places are winning market share now.

Since the margin is so low, agent distribution model is failing now and will stop very quickly. In no time, the seller will have no choice but direct selling. Direct fight or else you can never win. At the mean time, customer is enjoying the show.

You can also view the 4P definition below taken from wikipedia

Elements of the marketing mix are often referred to as the "Four 'P's", a phrase used since the 1960's

• Product - It is a tangible good or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors.

• Price – The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product.
• Promotion represents all of the communications that a marketeer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above).
• Place – A way of getting the product to the consumer and/or how easily accessible it is to consumers.

Any organization, before introducing its products or services into the market, conducts a market survey. The sequence of all 'P's as above is very much important in every stage of product life cycle Introduction, Growth, Maturity and Decline.