13 Jun The Core Principles of Marketing
Renowned marketing thought leader Philip Kotler laid out the marketing mix of Product, Price, Place, and Promotion as the four core principles of marketing. All marketing strategies are said to revolve around these and for any to be successful, these four elements are pivotal. The biggest challenge for business owners lies in determining the most appropriate method for each area.
An overview of the marketing mix are given below: –
The product can be a physical item or an intangible service. Some of the factors that company owners must focus on as far as the product is concerned to include name, packaging, usage, and safety factor. A product appeals differently to different marketing segments. Successful products are those that meet the demands of a certain group of people. Before a launch, business owners must do detailed research to get this right.
A product or a service always commands a price and the promoter determines it. Exorbitant prices can keep some buyers away whilst cheaply priced products could have lower profit margins. Therefore, finding the right pricing model that balances price and profitability is crucial. Moreover, there will be similar products competing for the same space in each market segment and will potentially encroach on market share. An example of a pricing model is one that includes cost price plus profit. This is where a fixed percentage of the production cost is included, and the pricing of the product is done based on its value. This means that the promoter of the product prices based on how consumers perceive it.
In today’s scenario, place refers to distribution channels. Where do you see your product being sold the most? Over the internet? In a retail store? Or to a wholesaler? Whichever channel you choose, it must be sold where there are enough buyers demanding for your product
Your customers must be aware of your product/service. They cannot be oblivious to their existence. Advertising on television, radio, newspapers, and magazines have been the default way of promotions. However, in recent times, online and social media marketing has taken this to a new level and needs to be leveraged. Promotions ensure products have a confident launch, help gain market share, and improve brand image. They basically help create a desire for the product and can result in increased sales.
A profitable campaign will most certainly involve marketing the right product or service at the right price, through the most viable channel, and with the right promotional strategy. Campaigns that focus on these core marketing principles stand a good chance of succeeding.
Aside from the 4P’s, which other marketing mix and strategies have you found useful? Share your thoughts with us.