Gujarat BoardEnglish MediumSTD 12 CommerceOCMMARKETING MANAGEMENT5 Marks
Question
Explain briefly the $4Ps.$
✓
Answer
Marketing mix consists of four main components known as the $4Ps.$ These $4Ps$ are
Product
Price
Place
Promotion.
$1.$ Product:
The first of the $4Ps$ is the product.
A product can be a tangible good or intangible service that fulfills the need or want of consumers.
Product is considered as the base of marketing process.
This concept says that the producer needs to have a clear cut idea about his product and what makes it unique before he can successfully market it.
Decisions that a producer needs to take under the product component include features of the product, packaging, branding, labeling, after sales service, complaint redressal, etc.
$2.$ Price:
Once, the producer gets a concrete knowledge about his product, he can move towards the second $‘P’$ i.e. Price.
Price refers to the value paid by the consumer for the physical, economic, social and psychological satisfaction received from the product. Price is the economic value of a product, which is generally depicted in the form of money.
Price determination of a product is most important for any business unit. Price is extremely important for both, the buyers and sellers.
Demand for a product is inversely related to the price of that product. This means that when price of the product rises, demand falls and when price falls the demand rises.
Determining the price will impact income, profit, demand and also marketing strategy.
Thus, every firm has to set its price in such a manner that the product becomes successful.
$3.$ Place $($Placement/Distribution$):$
Place or placement refers to the decision as to where to place the product so that the product can be accessed by potential buyers.
A firm can identify the place of putting the product by thoroughly understanding the target market and then setting up the distribution network. $($Note: For example, it will be wrong placement decision to set-up a fine dine premium restaurant in a low income group area.$)$
Thus, distribution refers to an arrangement of making the final product available at a place where it is required, whenever it is required and in whatever quantity it is required.
Distribution decision plays a very important role when the expected consumer group is large and is spread in heterogeneous geographical areas.
The producer does not come into direct contact with the consumer but has a link through various middlemen. The middlemen may include super stockist, wholesaler, retailer, etc. As a result, the distribution system is designed on the basis of type of product, number of consumers, geographical area, etc.
At the same time, the firm also sees that the product reaches the consumer in the proper packing and at least handling and distribution cost.
$4.$ Promotion:
Promotion is an important part of marketing mix.
An important function of promotion is to provide information regarding new product to the existing and the potential consumers.
In this process, the producer attempts to convert existing customers as well as potential customers to purchase the products.
Thus, promotion aims at creating awareness, attracting customers, increasing demand and motivating people to purchase.
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