Mar 11, 2015

Posted by in Marketing

The Principles of Marketing

Marketing is a process that allows a company to determine what customers want and allows it to bring that product to them in the best way possible. Although it may sound simple, marketing is actually a complex issue that includes several principles. By combining these principles, the company manages to comprehend the needs of the market and to develop an efficient strategy designed to bring the success. These principles, which have been called the 4 P’s, are the key to achieving performance, so it’s very important to take them into account and to analyze them very well.

Product

The first principle is the product sold by the company, which can be a certain item or a service. The efficiency of the product is measured by the satisfaction it offers to the group of customers it is designed for. The product must be of good quality so it will manage to meet the needs and requirement of customers, so it must be created by following a certain set of rules. When designing a product and offering it to the public, you must take into account several factors such as name, design and ease of use.

Price

The price of the product represents its cost or how much the customer has to pay to have the product and it’s set according to how it can increase the company’s profit. As the prices grow, the demand decreases and when the price of the product drops, the demand rises but the profit is no longer as high. The price can either be cost-plus which means a certain percentage is added to the production costs or it can be a value-based price that is determined according to the perception of the customer on the product.

Place

This principle determines where the product will be sold and how it will reach the market. For the customers to purchase a product, they must reach it, so it must get in stores through various distribution channels. Choosing these channels is based on their reliability and convenience so the product will become accessible and attractive. In case of larger businesses, the product gets to a wholesaler who then distributes it to stores.

Promotion

This last marketing principle is related to how the company communicates with consumers, namely how they advertise their product. This process often involves media in order to spread the word about a new product or a lower price. A promotion can either include media advertising or it can be based on direct selling.