Narrator: Listen to part of a lecture in a business class.
Professor: OK, let’s start! Now, in yesterday’s class, we talked about what marketing actually is… connecting your target market—your prospective buyers—with the goods and services you are selling. Today, we will talk about what is called the “marketing mix”—the components you need to successfully market your product offering. The “marketing mix” is a core concept in marketing—it provides a systematic, uh… framework for proper decision-making… ensuring that you have a well-developed plan to reach your potential customer base.
So, what does this marketing mix framework look like? Well, it can be summarized with the Four P’s of Marketing.
Alright, as you can see, the four P’s—product, price, promotion, and place—they can be in any order, really, although usually “product” is listed first. The four P’s are the things you need to focus on in developing your marketing mix.
So let’s start with product. This one is easy—you have to know what it is you’re selling. And there are many attributes to understand about your product—or service—and the better you understand them, the more successful you will be at marketing that product. Things to know include… your product’s features, quality level, design, uses, branding, advantages, packaging, cost to produce, and so on. Now, keep in mind that this framework can also be used to help develop new products—so in that case, feedback from previous marketing endeavors can help you redesign an existing product, or create a new product—to fill a demand that hasn’t been filled yet.
Second, let’s look at price. This is not as simple as “how much do we charge for this product?” That is certainly part of it… but pricing is more complex than just the sticker price you see when you buy something at the store. Of course, you must consider the price consumers are willing to pay… but you also need retailers to put the items on the shelf in the first place. Do you offer volume discounts? Do you expect payment up front, or do you allow credit purchases, and if so, on what terms? Often, decisions about pricing can influence whether consumers or vendors opt to buy your products, rather than a competitor’s products.
Next up… promotion. This is usually what people think about when they hear the word “marketing”—they think “advertising.” But really, promotion is much more than just advertising. It’s about using some or all of the channels—ads, publicity, public relations… even direct marketing—to connect with your target customer base. Promotion also includes decisions about when and how to use sales—you know, reduced prices or other special offers—to motivate consumers to buy your product. Now, here’s an example of what not to do… let’s say you’re running a marketing campaign for a luxury product. Something like… designer jewelry. Now, this is an expensive product category, and usually the customers buying these kinds of products will be most interested in product differentiation—the idea that they are buying something precious and unique. So your promotions should not consist of giving a bunch of price discounts—this will not attract the right customers. In fact, it may even turn off some of the customers you hope to connect with. They don’t want less expensive jewelry, they want better jewelry. So, you should focus on what makes your product offering different and special.
The final P, then, is place. This refers to how you deliver your products to your customer. For example… it’s no good to have a great product everyone wants to buy, if they don’t know where to buy it! So, place refers having an appropriate distribution strategy for your products. Again, using the example of designer jewelry… this is a differentiated, elite product, and when customers by it, they want to feel they are buying something exceptional. So, you do not want to use a mass-market distribution strategy for your jewelry—you want distribution to be focused on a select few locations, like stores in premier shopping districts in major cities. Conversely, if you’re marketing a breakfast cereal, you’re more likely to want to develop a broad placement strategy, partnering with the biggest grocery chains and food distributors to get your cereal stocked on as many supermarket shelves as possible.
Alright, I have an assignment for you. I want you to break into teams of four. Each team will develop a marketing strategy for a hypothetical product that I will assign to you. Remember the four P’s of the marketing mix—product, price, promotion, and place—and next time we meet, each team will give a five-minute presentation on your ideas for a successful marketing strategy tailored for that product.
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What is the main topic of this lecture? |
Gist-content. The lecture is about the Four P’s of Marketing, a framework for making decisions about marketing strategy. |
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| ✗ | A How to determine the appropriate pricing for a luxury product |
Pricing in general is discussed in the lecture, but this is not the main focus. |
| ✓ | B Factors to consider in developing a marketing strategy |
Correct. The Four P’s of Marketing is a framework for marketing strategy decision-making. |
| ✗ | C Why some marketing strategies fail |
The professor discusses some mistakes to avoid while developing a marketing strategy, but this is not the main topic discussed. |
| ✗ | D The differences between mass-market products and specialty products |
This topic comes up in several places when examples are being discussed, but this is not the primary focus of the lecture. |
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According to the professor, what might be two examples of a poor marketing strategy? Choose 2 answers. |
Detail. Throughout the lecture, the professor indicates that it is important to understand many aspects of the product and the target customer base when developing an appropriate marketing strategy. |
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| ✗ | a Selling products at a price lower than competitors’ products |
The professor does not indicate that pricing below a competitor’s product price point would necessarily be bad. It might depend on a number of factors. |
| ✓ | b Using a mass-market distribution strategy for a luxury product |
Correct. In discussing the example of designer jewelry, a luxury product, the professor says that “distribution [should] be focused on a select few locations, like stores in premier shopping districts in major cities.” |
| ✓ | c Failing to consider the quality of a product in an advertising campaign |
Correct. One aspect of the “product” component of the 4 P’s is understanding the product’s quality, and how that impacts all marketing decisions. |
| ✗ | d Using promotions to encourage existing customers to repeat purchases |
Repeat purchasers are not discussed in the lecture. |
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Why does the professor talk about breakfast cereal? |
Organization. The professor mentions breakfast cereal in discussing “place,” meaning the placement or distribution strategy for a product. Breakfast cereal is an example of a mass-market product for which the goal is getting the “cereal stocked on as many supermarket shelves as possible.” |
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| ✓ | A To provide an example of a product for which a broad placement strategy is appropriate |
Correct. This is the reason breakfast cereal is discussed by the professor. |
| ✗ | B To illustrate the difference between a perishable product and a nonperishable product |
Perishable and nonperishable products are not discussed in the lecture. |
| ✗ | C To demonstrate how effective sales promotions can be |
Breakfast cereal is discussed in the context of placement and distribution, not sales promotions. |
| ✗ | D To show that marketing encompasses much more than just advertising |
The professor implies this in the lecture, but breakfast cereal is discussed to make a different, more specific point. |
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In the example about designer jewelry, what does the professor imply about offering price discounts? |
Inference. The professor states that it would be a mistake, noting that “it may even turn off some of the customers you hope to connect with.” |
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| ✗ | A It is an effective way to generate new, profitable customers. |
The professor actually says that price discounts for this product may attract the wrong kind of customers, and could turn off customers for whom the product is intended. |
| ✗ | B It may result in opportunities to sell additional products to existing customers. |
This idea is not mentioned or implied in the lecture. |
| ✓ | C It works against the image of the product being special. |
Correct. This professor states that potential customers of designer jewelry “don’t want less expensive jewelry, they want better jewelry. So, you should focus on what makes your product offering different and special.” This implies that offering price discounts diminishes the idea of the product being special. |
| ✗ | D It can provide insight about which customers are likely to recommend the product to their friends. |
This idea is not mentioned or implied in the lecture. |
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What is the professor’s point when she discusses advertising? |
Organization. The professor mentions advertising during the discussion of promotions. Her point is that promotion covers many more techniques than just advertising. |
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| ✓ | A It is only one of a variety of promotional techniques. |
Correct. The professor mentions direct marketing, sales, public relations, and publicity as other ways of promoting a product. |
| ✗ | B Most people are not familiar with the tactics used in advertising to persuade people to buy products. |
This idea is not discussed in the lecture. |
| ✗ | C No product can be sold successfully without advertising. |
The professor indicates that there are several different means of promoting a product, including advertising. She does not indicate that a successful promotion strategy must include advertising. |
| ✗ | D It should not be used if the product is dangerous for some people. |
This idea is not mentioned in the lecture. |
Narrator: Listen again to part of the lecture. Then answer the question.
Professor: Of course, you must consider the price consumers are willing to pay… but you also need retailers to put the items on the shelf in the first place. Do you offer volume discounts? Do you expect payment up front, or do you allow credit purchases, and if so, on what terms?
Narrator: What does the professor mean when she says this:
Professor: Do you offer volume discounts? Do you expect payment up front, or do you allow credit purchases, and if so, on what terms?
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What does the professor mean when she says this? |
Function of What Is Said. In this quote, the professor discusses decisions that must be made about pricing, including options for how the product is purchased, and methods for enticing retailers to carry the product. |
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| ✗ | A She is asking students what their preferred pricing strategies are. |
These questions are rhetorical. They are intended to illustrate the types of decisions about pricing that need to be made in a marketing campaign. |
| ✗ | B She is uncertain whether the point she is discussing is relevant to marketing strategy. |
The professor is claiming the opposite. The decisions implied by the questions she asks are critical parts of a marketing strategy. |
| ✓ | C She is trying to illustrate that pricing strategy involves more than just determining what consumers are willing to pay. |
Correct. The professor’s questions give examples of pricing decisions beyond the issue of what consumers are willing to pay. |
| ✗ | D She believes that some pricing strategies are always superior to others. |
The professor does not indicate that she prefers any particular pricing strategy to others. |