Buying, selling, market research, transportation, storage, advertising – these are all part of the complex area of business known as marketing. In simple terms, marketing means the movement of goods and services from manufacturer to customer in order to satisfy the customer and to achieve the company’s objectives. Marketing can be divided into four main elements that are popularly known as the four P’s. The four P’s is the product, price, placement and promotion. Each one plays a vital role in the success or failure of the marketing operation.
The product element of marketing refers to the good or service that a company wants to sell. This often involves research and development (R & D) of a new product, research of the potential market, testing of the product to insure quality, and then introduction to the market.
A company next considers the price to charge for its product. There are three pricing options the company may take : above, with or below the price that its competitors are charging.
The third element of the marketing process – placement – involves getting the product to the customer. This takes placethrough the ‘channels’ of distribution. A common channel distribution is :
Manufacturer -> Wholesaler -> Retailer -> Customer
Wholesalers generally sell large quantities of a product retailers and retailers usually sell smaller quantities to customer.
Finally, communication about the product takes place between buyer and seller. This communication between buyer and seller is known as promotion. There are two major ways promotion occurs : through personal selling, as in a department store; a through advertising, as in a newspaper or magazine.
The four elements of marketing – product, price, placement and promotion – work together to develop a successful marketing operation that satisfies customers and achieves the company objectives.
- Marketing id the movement of goods and services from manufacturer to customer in order to satisfy the customer and to achieve the company’s objectives
- Product is goods or services a company wants to sell
- Price is how much to charge for a product
- Placement is the getting the product to the customer
- Promotion is the communication between buyer and seller