Composition of Products, Price, Distribution and Promotions

15/05/2020 0 By indiafreenotes

In the sixties professor Neil Borden at Harvard Business School suggested that all actions of the entrepreneur, that are able to have an impact on buyer’s behaviour should make a marketing composition and be planned in such a way as to have the best effect together. Later Jerome McCarthy proposed a marketing composition consisting of the four “p”, thus: product, price, place and promotion, and each of them consisting of several actions.

  1. Product

The product (or service) is the foundation of any business because it is offered by an entrepreneur to customers who pay for it. Products are designed to fulfil specific needs of buyers. In turn, it is the duty of marketing specialist to find anything that will distinguish the product in comparison to others, and make the customers able to pay more for it.

  1. Price

Price is the element of the marketing mix that brings profit, while the other only generate costs. It is also one of its most flexible elements, because it may be changed rather quickly. Fixing the right price is not easy- the lowest price is not always the best. While setting it, you have to look for additional benefits that will make the product more attractive and thanks to it you can require a higher rate.

  1. Distribution

Distribution is related with the methods of delivery to the customer. You can sell either directly or through trade agents. The manufactures, who do not want to pay for their own distribution channels, often decide to sell using middlemen. The choice of the method of distribution is very important because it raises the commitments and the difficulties associated with possible changes.

  1. Promotion

On the other hand, promotion includes those activities that allow the customer getting information on product. This does not mean, however, that the content of the message is left to itself .It is the entrepreneur who decides what to communicate, to whom, with what frequency and the like. Instruments used here include among others: advertising, personal promotion, sales promotion, public relations.

Philip Kotler (1999: 133-134) added another two “p” to the presented this way the marketing mix, i.e. politics and public opinion. According to him, the policy significantly affects the sale, and therefore marketing specialists should use various lobby and engage in political activities. If, for example, legislature has ordered the purchase of a certain device, their sales would increase.

And in turn, the public is prone to new trends which can affect the interest in some products or services. If there is an opinion that some products are dangerous, producers should lead campaigns aiming to convince consumers that it is not.

It is not important how many elements will be there in the model adopted by you, it is important, however, to make them help to create an effective marketing strategy. Usually adopted strategies are summarized in four groups corresponding to the main elements of marketing (product, price, distribution, promotion). They are presented together with the relevant tactical plans.