chapter 5 marketing.pdf
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Marketine Mix HrsJRl.{,|. Purpose of the marketing mix is a combination of four elements or concepts of marketing which is:
O ProductO PriceO Place and DistributionO Promotion
A. Product
A product is anything that can be offered to a market for attention, acquisition, use or consumption that might
satisfy a need or want (Kotler, 2007)
tr Goods or servicestr Maximum profittr QualityB Product identity : packaging, labeling, branding
B. Price
Price is the only marketing mix strategy that brings revenue to a firm. In an exchange process, price is important to a
firm..Price is the amount of money charged for a product or services or the sum of all the values that
customers give in order to gain benefits of having or using a product or service
(Armstrong and Kotler, 2007).Price is determined by severalfactors:
* EDemandHigh demand can increase prices of goods e.g. cars.
* ECostProduction costs and how profits can be a factor pricing.
* ECompetitionBased on the brand according to market conditions
C. Place
Comfortable a nd strategic featuies:
i) Types of Business
- Determine the place of business-Retailing.
ii) Existing capital-High capitalto shop in town.
iii) Competition with other traders
-Need to examine the size of competitors, the advantages and disadvantages.
-lf the location of many competitors do business looking for clients
iv) Types of Customer- include age, gender, income, spending levels, cultures and religions.
v) Facilities available
- Complete with basic facilitiesvi) Law and zone control
-law prescribed by the local government council, town hall and municipal
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D. Promotion
.Method, how to tell, enlighten, persuade and influence people.oAimed for creating, maintaining and expanding the market for a product.Activities are divided into four:1)Advertisement
al Description odvertisement informotion and explanotions.Does not affect the purchaser.
Sample Science Fair and Expo at UM
b) Persuasive Ad / Classifieds Persuade information and detoiled desuiptions.Persuade and influence buyers to purchase.Examples of Smart Shop
cl Cl ass ifie ds re me m be r.Ensure that consumers continue to use this product.
Exam ple: Toothpaste, sham poo
2) Direct sales
Salesman came to the house or office.
Training and persuasive techniques will be taught tosalespeople.
Demonstrations done to convince.3)Sales Promotion
Increase the quality of sales.
Free gifts, lucky draws and garage sales.
4) Publicity
using media such as newspapers, television, radio and so on.
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