Compendium admissions 2023-25
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| 57 Marketing Mix The 4Ps and later on the 7Ps (focused on service marketing with the added aspect of intangibility) help a company formulate a holistic marketing plan around its product offering. Product It encompasses the goods/services offered by a company to its customers. Multiple factors should be considered when designing a product for the market and assessing what its performance will be in the market. The criteria used for the assessment can be variety, quality, design, features, brand, packaging, and services. There are both tangible and intangible qualities of a product that should be considered Promotion It encompasses all the activities used to communicate value and convince customers to purchase a product/service. It includes advertising, personal selling, sales promotion, and public relations. Since value is being communicated to both internal (upper management) and external stakeholders (customers and investors) as well as business partners (vendors and distributors) there is a need for practices to be informative and reinforce a positive image for the brand. Price The amount of money that a customer pays fora good service has to be dealt with a lot of care. Pricing decisions also include what type of discounts can be provided or what the payment period might be. Multiple pricing strategies can bethought of fora product offering. Some common ones are • Competition-Based Pricing • Cost-Plus Pricing • Dynamic Pricing • Freemium Pricing • High-Low Pricing • Hourly Pricing • Skimming Pricing 58 • Penetration Pricing • Premium Pricing • Project-Based Pricing • Value-Based Pricing • Bundle Pricing • Psychological Pricing • Geographic Pricing The overall pricing strategy might be a mix of the ones stated above. However, the major philosophy that has to betaken into consideration while pricing an offering is that one can price something at any point above its cost and lower than its net perceived benefit from the point of view of the customer. Sometimes a company might even decide to sell its products at a loss i.e., lower than its cost to gain more market share loss leader e.g., Jio). Customer Perceived Value = Total Perceived Benefits – Total Perceived Costs Benefits could be in terms of added functionality emotional association other psychological benefits, while costs can be in terms of money time energy other psychological costs Download 4.08 Mb. Share with your friends:
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