What are physical products purchased by companies to produce other products called?
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Product, Price, Promotion, Place Show
What are the 4 P’s of Marketing?The “4 P’s of Marketing” refer to the four key elements comprising the process of marketing a product or service. They involve the marketing mix, which is a set of tools that a company uses to influence consumers into buying its product. The marketing mix addresses factors such as:
History of the 4 P’s of MarketingThe individual who conceptualized the 4 P’s of Marketing was a Harvard University professor named Neil Borden. In 1964, Borden introduced the idea in one of his published articles called “The Concept of the Marketing Mix.” he mentioned that many companies could use the framework to increase the likelihood of their success when advertising their products. Marketing Mix1. ProductA product is any good or service that fulfills consumer needs or desires. It can also be defined as a bundle of utilities that comes with physical aspects such as design, volume, brand name, etc. The type of product impacts its perceived value, which allows companies to price it profitably. It also affects other aspects such as product placement and advertisements. Companies can change the packaging, after-sales service, warranties, and price range, or expand to new markets to meet their objectives. Marketers must understand the product life cycle and come up with strategies for every stage in the life cycle, i.e., introduction, growth, maturity, and decline. 2. PriceThe price of a product directly influences sales volume and, consequently, business profits. Demand, cost, pricing trends among competitors, and government regulations are crucial factors that determine pricing. Price usually reflects the product’s perceived value rather than its real value. This means that pricing can be increased to promote exclusivity or reduced to create access. Thus, pricing involves making decisions in terms of the basic price, discounts, price alteration, credit terms, freight payments, etc. It is also important to analyze when and if techniques like discounting are required or appropriate. 3. PromotionPromotion involves decisions related to advertising, salesforce, direct marketing, public relations, advertising budgets, etc. The primary aim of promotion is to spread awareness about the product and services offered by a company. It helps in persuading consumers to choose a particular product over others in the market. Promotional efforts include the following:
4. Place (or Distribution)Place involves choosing the place where products are to be made available for sale. The primary motive of managing trade channels is to ensure that the product is readily available to the customer at the right time and place. It also involves decisions regarding the placing and pricing of wholesale and retail outlets. Distribution channels such as outsourcing or company transport fleets are decided upon after cost-benefit analysis. Small details such as shelf space committed to the product by department stores are also included. Extensions to the 4 P’s of MarketingNew marketers recommend expanding the 4 P’s of Marketing to include services as well. They include:
More ResourcesThank you for reading CFI’S guide to the 4 P’s of Marketing. To keep learning and advancing your career, the following CFI resources will be helpful:
What are the 4 types of consumer products?There are four types of products and each is classified based on consumer habits, price, and product characteristics: convenience goods, shopping goods, specialty products, and unsought goods.. Convenience Goods. ... . Shopping Goods. ... . Specialty Goods. ... . Unsought Goods.. Which type of business physically produces the products it sells to consumers?Manufacturer. The manufacturer business model utilizes raw materials to create a product to sell. This type of business model might also involve the assembly of prefabricated components to make a new product, such as automobile manufacturing.
What are the three categories of consumer products?Consumer goods are divided into three categories: durable goods, nondurable goods, and services. Consumer durable goods have a significant life span, often three years or more (although some authorities classify goods with life spans of as little as one year as durable).
What is a series of related products offered by one company called?What Is a Product Line? A product line is a group of related products all marketed under a single brand name that is sold by the same company.
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