Marketing`s 4 P`S

Marketing's 4
Product
Price
Place
Promotion
P’S
Product Definition
Product
Service
Understand the difference between a product / service
Tangible
Intangible
“Product”
•
What is it ? (Define it’s market/segment & positioning)
•
What it looks like ? (visual identity, packaging)
•
How does it perform ? (relative to competition)
•
What are it’s ingredients ? (claims)
•
Does it need protection? (Packaging/toxic)
•
What does it cost ? (pricing)
•
Shelf Life / Lifecycle
Marketing's 4 P’s
2 Price
Marketing’s 4 P’s
“Price”
Marketing’s 4 P’s
•
•
•
•
•
•
•
Competition (value proposition)
Product Positioning (Quality;)
Sizing strategy (Size benefits)
Component costs:- formula; packaging
Trade Margins (Wholesale; retail; tender/bulk)
Domestic / International (Sales Agents commissions
Profit margins (Sales mix)
2
Methods
Pricing
 Cost Based Pricing ………………………..Products
 Activity Based Pricing……………………Services
 Perception based Pricing…………………Added Value
“Sighter” Pricing
Costing
•
Nett Sales (after discounts)
•
•
Cost of goods material/component cost COG
Gross Profit
•
Fixed
•
•
Variable telephone; transport; postage; electricity etc
Contribution before marketing – CBM
Salaries; Admin; IT; Rent etc
Marketing
•
•
•
Contribution after Marketing – CAM
Tax
Net Profit
Ratio %
100
40
60
11
8
41
15
26
10
16
Warning
Small businesses fail not because they are not profitable
But
.. ..
Because they run out of money i.e. Cash Flow.
3
Place
Marketing’s 4 P’s
Distribution
Place
•
Evaluate distribution Channel options.
•
Find best channel to serve target market.
•
Align Sales force capability with channels needs
•
Examine costs of servicing channels
e.g. retail – wholesale - pharmacy
Look for niche
“Place”
3
Place

Understand Trade/Shopper profiles (Branded loyal/Discounters)

Align with target market

Target distribution gaps (e.g. Chemists; w/s Hawkers)

Commit Sales Force resources

Train sales staff (industry specific Knowledge)
Marketing’s 4 P’s
(e.g. Demographics)
4
Marketing's 4 P’s
“Promotion”
•
Advertising (TV; Print; Radio; Social Media; Billboards etc)
•
Sales Force (Sales aids & incentives)
•
Merchandising (Eye level - Buy level)
•
Price Offers (off-pack; banded packs discounts)
•
Point of Sale (Wobblers; Signs; etc)
•
Sampling
•
Demonstrators (in-Store conversion)
•
Trade Shows (PR)
(Trial C.O.G cost)
Marketing's 4 P’s
4
Company/Product
Stylise
Logo
Shapes
Font
Corporate
Identity
Stationary
Image & Reputation
Colour
Palette
Visual
Identity
Brand Corporate Identity