19. Marketing

Marketing is a total system of business activities designed to plan price, promote and distribute goods and services to satisfy individual and organizational objectives.

The key to successful marketing is having the right product at the right price in the right place with the right promotion.

Marketing can be divided into 4 main elements that are popularly known as “the four P’s: product, price, promotion, and place.”

Each of the 4 Ps focuses on the customer and each is related to the other because a decision about one usually affects the others. The most effective combination of the 4 Ps is the right marketing mix for each particular product or service.

Product is the first and most important element of the marketing mix. Product strategy means making coordination decision on the product mix, product lines, individual product items, brands, packages and services.

As a product is developed and introduced and as it progresses through its life cycle, decision must be made about the pricing of the product. Among the important factors considered when setting a price are:

• the costs and business expenses involved in the manufacture or distribution of the product,

• its fashion and seasonal appeal,

• the competition,

• government price regulations,

• supply and demand.

Marketers may choose the price above or below the average or current market price. If the price is above competitors’ price, the marketer must offer some unique advantages that are easily seen by the customers. If marketers’ price is below the market price, they may attract more customers and increase sales. If the price is the same as others then the service must be better to attract the customer.

W hen a product comes off the production line, the manufacture must select the best distribution channel to get that product to the consumer. No mater how good a product is, it can be a total sales failure if it arrives in the market place too late, if distribution costs are too high, or if it is not distributed as widely as a competing product.

Producers of consumer goods have 5 channels to choose from on marketing their goods. The channels range from the simplest (manufacture to consumer) to the most complex (manufacture – to agent – to wholesaler – to retailer – to consumer).