The management of a company must analyze customer´s needs to design their product and decide strategies to introduce it onto the market. In order to do this they use the well-known ´four Ps¨ formulation of the marketing mix ( product, place, promotion and price).
Decisions about the product should be the first ones taken because it is impossible to value, distribute or promote something that it doesn’t exist. They can be able to design a product and achieve their diferenciation through product features (quality, price, reliability, etc..) or even through wrappers and containers in wich products are sold.
Price is another important element that makes that the consumer choose one product or another so there must be decisions about costs, about how to fix product prices depending on competition, on demand..
There are differents strategies that marketers can try out, for example reduced-price or maybe fix high prices because that means ¨prestigious brand”.
For launch a new product it is also necessary promotion: the producer, during the introduction and growth stages of the standart product life cycle, has to developed product or brand and inform and persuade consumers.
The four tools of promotion are:
1. Publicity: any menthion of a brand product that you don’t have to pay for it. It presents some advantages because you don’t have to pay for it, it improves the prestige or reputation and also keep your loyal customers. But publicity disadvantages are for example that you cant control it, if the customers took a bad impression, image of the company they wouldn’t buy the products and it is only know by a small sector o people.
2. Sales promotion: tempory tactics designed to stimulate either earlier or stronger sales of a product. This presents some advantages because sales shoot up in a short time and it is also a way to strengthen brand loyalty among retailers.
3. Personal Selling: oral communication with potential buyers of a product with the intention of making a sale. It is the easier way to persuade the consumer because it is face to face and you can make known the product better.
4. Advertising: any paid form of non-personal communication of ideas or products in the ¨prime idea¨. Intented to persuade and to inform. With this tool is possible to create advertisements that appears in newspapers, television, station, the products or brand are known for most people. How much to spend on advertising is always problematic.
Finally, the producer must provide the product to the costumers in a place.

No mark given.

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License